Bank customers pay N75.5bn account maintenance fee in six months - Newstrends
Connect with us

Business

Bank customers pay N75.5bn account maintenance fee in six months

Published

on

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.”

Loading

Auto

Carloha Opens Wider Access to Chery Q as Smart EV Enters Nigeria’s Mainstream

Published

on

Carloha Opens Wider Access to Chery Q as Smart EV Enters Nigeria’s Mainstream

 

Carloha Nigeria is taking the Chery Q to motorists across the country, widening access to an electric vehicle designed to combine affordability, practicality, intelligent technology and zero-emission motoring.

The move by the official franchise holder, assembler and authorised distributor of Chery vehicles in Nigeria is expected to give more Nigerian motorists an opportunity to experience the Chinese automaker’s latest generation of smart electric mobility.

Built around Chery’s global “Quest for Joy” philosophy, the Chery Q blends distinctive styling with intelligent technology, advanced safety features and efficient electric performance, while drawing inspiration from the heritage of the iconic Chery QQ family.

Carloha said the model is targeted at a broad spectrum of motorists, including young professionals, growing families, first-time electric vehicle buyers and urban commuters looking for a cleaner, smarter and more connected driving experience.

The Chery Q also brings a strong design proposition to the compact EV segment. Its award-winning exterior, recognised with both the Red Dot Design Award and iF Design Award, features expressive geometric styling, rounded LED lighting and a contemporary two-tone interior.

Despite its compact dimensions, the vehicle has been engineered to maximise interior space, achieving an 85 per cent space-efficiency ratio.

Measuring 4,195mm in length with a 2,700mm wheelbase, the Chery Q offers substantial passenger room while retaining the manoeuvrability expected of an urban vehicle.

Its practicality is further enhanced by luggage capacity that expands from 375 litres to 1,450 litres, alongside a 70-litre front trunk and 38 smart storage compartments.

According to the company, the combination makes the Chery Q suitable for a wide range of everyday applications, from city commuting and shopping to family outings and weekend journeys.

Beyond its styling and practicality, the electric vehicle has been developed around a rear-engine, rear-wheel-drive architecture, supported by independent suspension and balanced weight distribution to enhance handling and stability.

The model also features Electric Power Steering and a One-Box Brake-by-Wire system designed to provide smoother braking response, improved driving precision and greater control, while supporting regenerative energy recovery.

A key attraction for potential EV buyers is the Chery Q’s claimed driving range. The vehicle offers an estimated 420-kilometre NEDC range, giving users greater flexibility for daily commuting and longer journeys between charging sessions.

Charging downtime is also reduced through its fast-charging capability, with the battery able to move from 30 per cent to 80 per cent in about 16.5 minutes, according to the manufacturer.

With the nationwide rollout, Carloha is positioning the Chery Q as part of the growing transition towards cleaner and smarter mobility in Nigeria, as interest in electric vehicles continues to expand.

The company’s wider strategy of assembling and distributing Chery vehicles locally also places the Q within its broader effort to make the brand’s technology and vehicle range more accessible to Nigerian motorists.

Loading

Continue Reading

Business

NNPCL Slashes Petrol Pump Price to N1,405 in Abuja, Dangote Refinery Cuts Gantry Rate

Published

on

NNPCL Slashes Petrol Pump Price to N1,405 in Abuja, Dangote Refinery Cuts Gantry Rate

 

Abuja — The Nigerian National Petroleum Company Limited (NNPCL) has announced a reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, at its retail outlets in the Federal Capital Territory (FCT), Abuja.

 

A market survey conducted on Sunday revealed that NNPCL filling stations in key areas such as Gwarimpa and Kubwa have adjusted their prices downward to N1,405 per litre, a reduction from the previous rate of N1,430 per litre.

 

However, the survey indicated a slight variation in pricing across different NNPCL outlets within the capital city. While the Gwarimpa and Kubwa stations are selling at N1,405, other outlets located along the Kubwa Expressway, Air Junction, as well as those in Wuse Zones 4 and 5, are offering the product at a lower rate of N1,395 per litre.

 

The latest price adjustment by the national oil company follows a significant reduction in the gantry price of petrol by the Dangote Refinery. Reports indicate that the refinery recently slashed its gantry price by N25, bringing the rate down to N1,325 per litre.

 

The reduction in pump prices is expected to bring slight relief to motorists and commuters in Abuja, who have had to grapple with high transportation costs fueled by elevated fuel prices in recent months.

 

Industry observers note that the ongoing price adjustments reflect the dynamics of the deregulated downstream sector, where market forces and refinery gate prices influence retail costs. It remains to be seen if other major marketers and independent oil marketers will follow suit with similar price reductions in the coming days.

 

Motorists in Abuja have welcomed the development, expressing hope that the downward trend in fuel prices will be sustained across the country and ultimately lead to a reduction in the overall cost of living.

 

NNPCL Slashes Petrol Pump Price to N1,405 in Abuja, Dangote Refinery Cuts Gantry Rate

Loading

Continue Reading

Railway

Rail-Port-Industry Link Critical to Cutting Logistics Costs – NRC 

Published

on

Rail-Port-Industry Link Critical to Cutting Logistics Costs – NRC 

 

The Nigerian Railway Corporation has said Nigeria must urgently integrate its rail network with seaports, inland dry ports and industrial centres to cut logistics costs, ease pressure on the highways and make the movement of goods across the country more efficient.

The NRC said a seamless connection between rail lines, ports and major production centres would strengthen the movement of agricultural produce, containers, petroleum products and other bulk cargoes, while reducing the cost and time involved in transporting goods from ports to markets and industries.

The Managing Director/Chief Executive Officer of the NRC, Dr Kayode Opeifa, stated this on Thursday in Lagos in a speech delivered on his behalf at the Transport Correspondents Association of Nigeria conference, stressing that rail, road, maritime, inland waterways and aviation must work as an integrated transportation system if Nigeria is to unlock the full economic benefits of its logistics sector.

The NRC boss also revealed that the corporation had opened the door wider for private investors to participate in the development of freight terminals, logistics hubs, rolling stock and other critical infrastructure as part of efforts to transform Nigeria’s rail system into a major engine of economic growth.

He said stronger private-sector participation was imperative because government alone could not provide the massive investment required to build an efficient and interconnected transportation system capable of lowering logistics costs and boosting economic activities.

Opeifa said Nigeria could no longer afford to develop its transportation modes in isolation, stressing the need to connect rail with seaports, inland dry ports, industrial centres and major economic corridors.

He said such integration would enable rail to play a greater role in moving bulk cargo across the country, while reducing the pressure currently placed on the highways.

According to him, rail has the capacity to move large volumes of passengers and freight over long distances and should therefore become a critical component of Nigeria’s logistics architecture.

He said, “At the Nigerian Railway Corporation, our focus is therefore not only on passenger transportation but also on strengthening freight operations and creating greater connectivity between rail lines, seaports, inland dry ports, industrial centres and major economic corridors.”

The NRC MD identified agricultural produce, petroleum products, containers and other commodities as some of the major categories of cargo that could benefit from a more efficient rail freight system.

He said an effective multimodal transportation network involving rail, road, maritime, inland waterways and aviation would reduce the cost of doing business, improve access to markets and strengthen Nigeria’s competitiveness.

Opeifa also called for a regulatory framework capable of attracting private capital into the transportation sector, particularly in rolling stock, freight terminals, logistics hubs and related infrastructure.

“The future of Nigeria’s transportation sector must also be driven by stronger partnerships. Government alone cannot provide all the infrastructure and investment required,” he said.

The NRC’s position comes amid growing concerns over the high cost of logistics and the burden placed on Nigerian businesses by inefficient movement of goods from ports to markets and production centres.

Opeifa said transportation infrastructure should be viewed not simply as public assets but as critical economic infrastructure capable of stimulating industrial production, trade and employment.

He, however, warned that vandalism and encroachment remained major threats to railway investments, stressing the need for stronger collaboration among government agencies, security organisations, host communities and passengers to protect railway tracks, bridges, signalling systems and other infrastructure.

He said the protection of rail infrastructure must become a collective responsibility if the country was to derive the full economic benefits of ongoing investments in the sector.

The NRC chief executive also stressed the need to make transportation affordable and accessible, noting that improved mobility would provide Nigerians with greater access to jobs, markets, education and economic opportunities.

Opeifa reaffirmed the NRC’s commitment to the Federal Government’s vision of developing a modern, integrated and efficient transportation system capable of supporting the country’s economic aspirations.

He commended TCAN for providing a platform for policymakers, operators, investors, professionals and the media to deliberate on the challenges and opportunities in Nigeria’s transportation sector.

He said sustained investment, innovation, collaboration and effective policy implementation remained essential to building a logistics system capable of unlocking Nigeria’s economic potential.

Loading

Continue Reading

Trending