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Senate Wants ATM Card Maintenance Fee Suspended

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  • Senate Wants ATM Card Maintenance Fee Suspended

The Senate has condemned Deposit Money Banks over excessive and illegal charges imposed on their customers.

While resolving to investigate the charges by commercial banks, the Senate asked the Central Bank of Nigeria to suspend the monthly Automated Teller Machine card maintenance fee imposed on users.

These were some of the resolutions reached by the lawmakers at the plenary on Wednesday, while adopting a motion moved by Senator Gbenga Ashafa, entitled, ‘Illicit and Excessive Charges by Nigerian Banks on Customers’ Accounts with Particular Focus on ATM Maintenance and Withdrawal Charges’.

The Senate resolved to “direct the committees on Banking, Insurance and Other Financial Institutions, and Finance to conduct an investigation into the propriety of the ATM card maintenance charges in comparison with international best practices and report back to the Senate.”

The upper chamber of the National Assembly also mandated the committees to invite the Governor of the Central Bank of Nigeria, Godwin Emefiele, to explain why the official charges as approved by the bank were skewed in favour of the banking institutions as against the ordinary customers of the banks.

The lawmakers further resolved to urge the CBN to suspend the ATM card maintenance charges being deducted from customers’ accounts and instruct the banks to reconfigure their ATMs to discharge up to N40,000 per withdrawal, pending the outcome of the investigation by the committees.

The Consumer Protection Council was also urged to be up and doing in taking up the plight of ordinary Nigerians by looking into the various complaints of excess and unnecessary charges by banks.

Moving the motion, Ashafa said, “The Senate notes with concern that there have been several complaints from Nigerians generally and on the social media concerning illicit and excessive charges by Nigerian commercial banks on customers’ accounts, with particular focus on ATM maintenance charges and ATM withdrawal charges.

“The Senate is aware that the CBN in 2017 increased the maintenance fees charged by banks on debit and credit card maintenance from N100 a year to N50 per month (N600 a year).

“The Senate is concerned that in a viral campaign that began on social media on Monday, 3rd of September, 2018, many Nigerians called for reforms of the banks. A campaign tagged: #Reform9jabanks, began on Twitter when a United Kingdom-based Nigerian medical doctor, Harvey Olufunmilayo, lamented the state of banks in Nigeria compared to those abroad.”

Ashafa decried that card users were being charged N65 per withdrawal using ATMs after the third monthly withdrawal from the machines outside that of the domicile bank of the user.

The lawmaker equally criticised most banks, which “have deliberately manipulated their ATMs not to dispense more that N10,000 per withdrawal in some cases, and in most cases, not more than N20,000 per withdrawal at the ATM.”

He said, “This is a deliberate ploy to manipulate the ATMs, which are ordinarily manufactured to dispense as much as N40,000 per transaction, in order to attract more bank charges from customers, who are forced to carry out more transactions due to the manipulated machines.

“The Senate is worried that it appears that the CBN is becoming insensitive to the plight of Nigerians, who are already complaining of excessive charges by commercial banks. If the CBN is trying to encourage a cashless Nigeria, why should they be making it more difficult and expensive for Nigerians to do transactions?”

Seconding the motion, the Deputy President of the Senate, Ike Ekweremadu, alleged that the CBN was encouraging the banks to continue with the trend against the interest of their customers, adding that the situation would discourage Nigerians from keeping their money in banks.

Senator Gbolahan Dada made an additional prayer, urging the CBN to introduce higher naira denominations of N2,000 and N5,000. Nobody seconded the prayer and it was dropped.

The Senate also on Wednesday approved the external borrowing plan of the Federal Government totalling $2.868bn, part of which is to fund the 2018 budget.

The approval followed the adoption of the report by the Senate Committee on Local and Foreign Debts, which was laid on Tuesday.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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