Business
Bank customers pay N75.5bn account maintenance fee in six months
Bank customers in Nigeria paid N75.5bn as account maintenance charges between January and June of this year, which is an increase of 43 per cent over what was paid in the first half of last year, a study has revealed.
A report from the Vanguard also indicated that there was a sharp rise in the income the banks generated from electronic banking (e-banking) services rendered to the customers during the same period.
The e-banking income was said to have risen by 51 per cent to N113.84 billion from N75.26 billion in the first half of last year.
It stated, “The bank’s half year financial statements showed that account maintenance fees paid by bank customers rose sharply by 43 percent to N75.5 billion in H1’21 from N52.94 billion in H1’20.
Sterling Bank had the highest growth rate in account maintenance fee, up by 75 per cent to N1.4 billion in H1’21 from N800 million in H1’20.
“This was followed by UBA with 50 per cent rise to N5.4 billion from N3.6 billion in H1’20.
“The bank with the least growth in account maintenance fee was FCMB recording N2.2 billion in H1’21, up 29 per cent from N1.7 billion in H1’20.”
For the e-banking income, Zenith Bank was found to have recorded the highest growth rate with N17 billion, 91 per cent rise from N8.9 billion in H1’20.
Union Bank recorded a 3.3 per cent decline to N3.54 billion from N3.66 billion in H1’21.
The report quited President of the Bank Customers Association of Nigeria, Dr Uju Ogubunka, as attributing the growth in account maintenance fees and e-banking income to increased transactions by bank customers despite low income and slow business activities in H1’21.
He stated, “Several factors can make account maintenance fees grow. Like I said, it is a function of transaction. If transactions are increasing then, the banks will have a reason to charge that fee. Remember what the name is account maintenance and there is a rate stipulated by the regulatory authorities that should be charged.
“So, those rates once they are maintained and they are growing it means that the customers are transacting more than whatever one would have thought of.
“The only problem that you may have is that if it can be proved that the basis on which these fees are collected by the banks is not in line with the principles and regulatory requirements that guide the collection of the account maintenance fee.
“I think it will be for the regulators to find out why the cost or the fees are increasing even when suspiciously business is not moving, people are not transacting as much as they would have loved to in their banking activities. These are all in the minds. Nobody knows what is happening in reality and that is why the authorities should be able to now take a look at that.”
Railway
BREAKING: Several Passengers Injured as Abuja–Kaduna Train Derails After Collision
BREAKING: Several Passengers Injured as Abuja–Kaduna Train Derails After Collisio
Several passengers were injured on Monday after a train travelling along the Abuja–Kaduna rail corridor derailed following a collision, authorities have confirmed.
The incident reportedly occurred near Asham along the busy rail line linking Abuja with Kaduna State, causing panic among passengers onboard the train.
The Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa, confirmed the development, stating that emergency response teams were immediately deployed to the scene following the derailment.
According to preliminary reports, the train derailed after colliding with another object on the track, though officials have yet to disclose full details about the circumstances surrounding the accident.
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Several passengers sustained injuries during the incident and were evacuated to the medical facility at the Idu Railway Station for treatment. Authorities, however, said no fatalities had been recorded as of the time of filing this report.
Eyewitness accounts and videos circulating on social media showed damaged train coaches and railway personnel assessing the situation while stranded passengers gathered near the tracks after disembarking from the train.
The Abuja–Kaduna rail corridor is one of Nigeria’s busiest passenger routes and serves thousands of commuters daily, particularly travellers seeking a safer alternative to road transportation.
Officials of the Nigerian Railway Corporation said investigations have commenced to determine the exact cause of the collision and derailment.
More details are expected as authorities continue rescue operations and assess the extent of the damage.
BREAKING: Several Passengers Injured as Abuja–Kaduna Train Derails After Collision
Business
NAJA to Tinubu: Guarantee crude supply to local refineries to tame petrol prices
NAJA to Tinubu: Guarantee crude supply to local refineries to tame petrol prices
The Nigeria Auto Journalists Association (NAJA) has urged President Bola Tinubu to ensure steady supply of crude oil to domestic refineries, particularly the Dangote Refinery, as part of measures to reduce the impact of rising petrol prices.
The association said prioritising crude allocation to local refineries would help Nigeria reduce its exposure to global energy shocks currently driving up fuel costs amid tensions in the Middle East.
The call came days after the Federal Government unveiled a plan to distribute 100,000 Compressed Natural Gas conversion kits nationwide to encourage motorists to switch to alternative fuel and reduce dependence on petrol.
While describing the CNG initiative as a positive step, NAJA stressed that strengthening domestic refining through reliable crude supply remains a more sustainable solution to Nigeria’s fuel pricing challenges.
NAJA Chairman, Theodore Opara, said the government should adopt policies that allow local refineries to obtain crude directly from the Nigerian National Petroleum Company Limited (NNPC), preferably in naira.
According to him, the current arrangement—where the Dangote Refinery imports a large share of its crude—leaves the facility vulnerable to global supply disruptions and price fluctuations.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” Opara said. “Direct crude supply from the NNPC will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”
He noted that despite being Africa’s largest crude oil producer, Nigeria still depends heavily on imported refined petroleum products, a situation that continues to expose the economy to volatility in the international oil market.
Opara argued that allowing domestic refineries to source crude locally and transact in naira would not only stabilise the downstream petroleum sector but also reduce pressure on the local currency.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions,” he said.
He added that while the government’s CNG programme could provide relief for motorists in the medium term, ensuring optimal operation of domestic refineries would deliver quicker and more far-reaching benefits for fuel pricing.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” he said.
Industry analysts say a coordinated strategy that combines the CNG initiative with strong support for domestic refining could help shield Nigerian consumers from the impact of international oil market volatility.
Business
Naira Gains Ground in Official FX Market, Ends Week on High Note
Naira Gains Ground in Official FX Market, Ends Week on High Note
The Nigerian naira ended the week on a stronger footing at the official foreign exchange (FX) market, closing at ₦1,366.23 per US dollar on Friday, according to the Central Bank of Nigeria (CBN). This marked a ₦5.27 gain over Thursday’s rate of ₦1,371.50, representing a 0.3% weekly improvement.
Throughout the week, the naira recorded steady gains, reflecting improved liquidity in the official FX window and growing confidence among investors and traders. On Monday, the currency opened at ₦1,405.62 per dollar, appreciating slightly to ₦1,401.40 on Tuesday and ₦1,376.19 on Wednesday before closing stronger on Friday. Analysts said this upward trend signals a stabilising official exchange market amid ongoing monetary reforms.
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Market observers attribute the naira’s appreciation to a combination of enhanced FX supply, consistent trading activities, and the CBN’s continued interventions to boost stability in the official market. The gradual recovery is seen as a positive indicator for importers, businesses, and consumers, as it helps moderate inflationary pressures and reduces the cost of foreign-denominated goods.
While the official market shows signs of stability, rates in the parallel market remain influenced by demand pressures. Experts, however, note that narrowing the gap between official and parallel exchange rates will require sustained policy consistency, stronger FX inflows, and continued investor participation.
The recent performance underscores the resilience of the naira and highlights the impact of strategic interventions by the Central Bank aimed at strengthening the currency, improving market depth, and supporting Nigeria’s broader economic recovery objectives.
Naira Gains Ground in Official FX Market, Ends Week on High Note
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