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Bank Customers Laud Senate Directive on ATM Maintenance Charges

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ATM at lagos
  • Bank Customers Laud Senate Directive on ATM Maintenance Charges

Bank customers have expressed gratitude to the Senate for its directive to the Central Bank of Nigeria to suspend the monthly Automated Teller Machine card maintenance fee imposed on users by commercial banks.

The President, Bank Customers Association of Nigeria, Dr Uju Ogubunka, described the directive as a good development for the industry and bank customers using the facility.

He said the development had long been awaited as people had been complaining about the maintenance fee.

According to him, though the bank customers are happy, those benefitting from the charges will not be happy because an avenue for revenue inflow will be blocked.

Ogubunka stated, “People have been suffering and now I am happy that their suffering will be reduced, if not eliminated. I know the CBN is a responsible organisation and if the National Assembly conveys a directive to them, it is only logical that they obey, though I cannot speak for them.

He added that there were several other charges being imposed on customers by banks that also needed to be reviewed.

He said the calculation of the maintenance fee was the same as that of Commission on Turnover that was scrapped years ago.

According to him, the ATM maintenance charge can be described as a new name for the CoT, which he described as unfair to customers.

“If you are removing the CoT, remove it and do not replace it with maintenance fees. That way, it will be fair enough on customers. When we talk about credit failures, some of them are as a result of high charges on customers,” Ogubunka added.

A bank customer, Eniola Tunwashe, described the ATM card maintenance fee as extortion.

According to her, the maintenance fee is unfair, considering the fact that she is unemployed and is just managing to save part of the little revenue she makes from menial jobs.

Tunwashe said, “The new directive is very good, and if you ask most people, they are happy about it too. How can the banks be charging me for card maintenance when my card is with me? Are they the ones helping to maintain it?

A professor of Economics at the University of Lagos, Olufemi Saibu, described all bank charges, save replacement of cards, as extortion of the customers.

He said, “Even the renewal of the ATM cards is wrong. The ATM cards should not expire, what is expiring in them? Many of the banks today have left their intermediation services and are looking for other ways of revenue not tied to their productivity.

Saibu, however, added that the Senate was going about the directive the wrong way.

He stated that the National Assembly, coming on board, was overstepping its legislative roles.

“What they should have done is to set up a committee to work with the CBN and banks to see what can be done on the issue. The approach the Senate is taking may not necessarily bring desired results,” Saibu added.

He noted that if the CBN ended up not obeying the directive, the Senate would appear as a toothless dog and an object of ridicule.

The President/Chairman of Council, Chartered Institute of Bankers of Nigeria, Dr Uche Olowu, buttressed the fact that the Senate was overstepping its boundaries.

He said members of the upper legislative chamber ought to focus on legislation that would improve infrastructure in the country to bring the cost of doing business down.

He stated that the ATM maintenance charges were as a result of the cost of buying the machines, installing inverters, maintaining them, and so on.

According to him, a critical analysis of banks’ financial statements will reveal that they make their revenue from treasury bills and not necessarily charges.

Olowu said, “I do not blame the Senate because they are representatives of the people and the people are complaining; but they are complaining without knowledge of how the system works.”

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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Peter Obi Advocates for Full Government Backing of Dangote’s $21bn Refinery Project

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Peter G. Obi

Peter Obi, a prominent Nigerian politician and public figure, has called for unwavering support for the Dangote Refinery amid recent conflicts between Dangote Industries and government agencies.

In a passionate appeal, Obi said the current disputes extend beyond political and personal differences, touching upon the broader interests of Nigeria’s economy and its future prosperity.

In his statement on X.com, Obi highlighted the refinery’s immense potential to drive economic growth and create employment opportunities.

With an estimated annual revenue potential of approximately $21 billion and the capacity to generate over 100,000 jobs, the Dangote Refinery represents a cornerstone of Nigeria’s industrial advancement and economic stabilization.

“The recent challenges faced by Dangote Industries should not overshadow the vital role this enterprise plays in our national economy,” Obi asserted.

“Alhaji Dangote’s contributions are monumental, and it is essential that we rally behind his ventures, particularly the refinery, which is set to make a significant impact on our fuel crisis and foreign exchange earnings.”

The refinery, with its strategic importance, stands as a beacon of hope for Nigeria’s fuel supply and overall economic development.

It is poised to address long-standing issues in the energy sector, provide substantial revenue streams, and enhance the country’s economic resilience. Given these benefits, Obi stressed that any actions hindering the refinery’s operation would be counterproductive.

Obi also commended Alhaji Dangote for his remarkable achievements across various sectors, including cement, sugar, salt, fertilizer, infrastructure, and more.

“Alhaji Dangote embodies patriotism and commitment to Nigeria’s growth. His extensive industrial activities are not only a testament to his entrepreneurial spirit but also a vital contribution to Nigeria’s economic landscape,” he added.

Despite the challenging business environment, Dangote’s diversified industrial investments demonstrate a commitment to Nigeria’s industrialization and job creation.

Obi urged the Federal Government and its agencies to offer full support to Dangote Industries, recognizing the broader economic benefits and the positive impact on national welfare.

“The success of Dangote Industries is intrinsically linked to the success of Nigeria and Africa as a whole. We cannot afford to let such a crucial enterprise falter,” Obi warned. “Every sensible and patriotic government should view enterprises like Dangote Industries as national treasures that deserve robust support and protection.”

Obi’s appeal underscores the critical need for collaboration between the government and private sector leaders to ensure the successful operation of key projects like the Dangote Refinery.

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Dangote Accuses NNPC and Oil Traders of Secret Operations in Malta

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Aliko Dangote, chairman of Dangote Industries Limited, has leveled serious allegations against personnel from the Nigerian National Petroleum Company (NNPC) Limited and certain oil traders.

Speaking at a session with the House of Representatives, Dangote claimed that these parties have established a blending plant in Malta, raising concerns about the integrity of Nigeria’s fuel supply.

Dangote described the blending plant as lacking refining capability, instead focusing on mixing re-refined oil with additives to produce lubricants.

“Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he stated.

He emphasized that these activities are well-known within industry circles.

Addressing the drop in diesel prices, Dangote argued that locally produced diesel, with sulfur content levels of 650 to 700 parts per million (ppm), is superior to imported variants.

He linked numerous vehicle issues to what he described as “substandard” imported fuel.

He called for the House of Representatives to set up an independent committee to investigate fuel quality at filling stations.

“I urge you to take samples from filling stations and compare them with our production line to inform Nigerians accurately,” Dangote insisted.

The accusations come amid an ongoing dispute between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Farouk Ahmed, NMDPRA’s chief executive, had previously claimed that local refineries, including Dangote’s, were producing inferior products compared to imports.

Also, the House of Representatives has initiated a probe into allegations that international oil companies are undermining the Dangote Refinery’s operations.

In response to the escalating tensions, Heineken Lokpobiri, the Minister of State for Petroleum Resources, intervened by meeting with key stakeholders including Dangote, Ahmed, and other top officials from the Nigerian petroleum regulatory bodies.

The discussions aimed to address claims of monopoly against Dangote, which he has strongly denied, and to ensure that all parties operate transparently and fairly.

This development highlights the complex dynamics within Nigeria’s oil industry. The allegations and subsequent investigations could impact market stability and investor confidence.

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Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

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Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

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