Business

Customers outraged over excessive bank charges

Published

5 years ago

November 28, 2021

Hidden and arbitrary charges are now the norm with Nigerian banks, which is giving them a not-so-pleasant reputation. These endless charges have almost become a necessary evil as customers now live with them; having been left without options.

Bank customers in Abuja and other states who spoke with Daily Trust expressed frustration over the numerous non-transactional debits they receive from their various banks without explanations.

While “big-time customers” that transact businesses running into millions of naira rarely complain of deductions by the banks, petty traders whose profit margin is small told our correspondents that they were being exploited.

Some students also said they rather kept their upkeep money in their wallets than in their bank accounts.

“All the new generation and old generation banks are fond of perpetrating illegal deductions,” said Zainab Musa Baba, a housewife and petty trader in Nyanya, Abuja.

“You will always see at least two alerts after every transaction, even if it is for just N1,000, and at the end of the month, you see multiple deductions,” she added.

Nwachukwu Samuel who banks with Access Bank, said he usually saw debit alerts on his account, and that most times, he would not go to the bank to complain.

“Sometimes I would not even do a transaction and I would see N50 charge. I see all manner of debit alerts, and because the money is usually small, and considering the stress one has to go through by visiting a branch to complain, I just let go,” he said.

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Samuel further said he was aware that the bank would be making a lot of money from the charges, looking at the volume.

A customer with Guaranty Trust Bank (GTB) who simply identified herself as Agnes, called on the Central Bank of Nigeria (CBN) to intensify surveillance on the banks, saying they were feeding fat on vulnerable customers.

She said although the charges were small, they were illegal and therefore advised CBN to punish erring banks.

Mukhtar Aliyu who spoke with one of our reporters from Kano on phone, said the needless and arbitrary deductions had discouraged customers from embracing the cashless banking policy.

“Whenever I sell a carton of spaghetti, my profit margin is not more than N100, but the banks have a way of getting something from this transaction, somehow,” he said.

“There was a day a customer told me that if he paid me for the bag of rice he bought through bank transfer, his bank would also charge him for that simple transaction,” he added.

Another bank customer, Chukwurah U. Paul said, “It is very pathetic, to say the least. The banks are always devising avenues to put holes in people’s pockets.

“We are charged for depositing cash, withdrawing and text messages. We will soon be charged for breathing the air and receiving sunshine,” he said.

Govt aware of infractions

The CBN recently disclosed that it had so far recovered N89.2bn excess and illegal charges slammed on customers by banks.

The Governor of CBN, Godwin Emefiele, represented by the acting Director, Corporate Communication, Osita Nwanisobi, at a public enlightenment fair in Calabar, Cross River State, said the figure was recovered in June, 2021, based on 23,526 complaints they received from customers bordering on charges and other related matters.

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In April this year, the Speaker of the House of Representatives, Femi Gbajabiamila, expressed concern over the way banks charge customers indiscriminately during transactions, saying that apart from known charges, there appeared to be “hidden” charges the banks impose on their customers.

Speaking when he hosted the board and management of the Standard Chartered Bank led by its Chief Executive Officer (CEO), Mr Lamin Manjang, Gbajabiamila said the house was concerned that such practice was making customers helpless; hence that Nigerian banks should come up with ways to address high charges on loans and other facilities they offered.

Some customers who spoke with one of our reporters said there was the need for the CBN to scrutinise all bank charges from time to time.

Some of them called for a forensic audit of the charges rather than waiting for customers’ complaints.

Approved bank charges

According to records from the CBN, the approved bank charges for various transactions include stamp duty, SMS alert (N4/SMS), using another bank’s ATM (N35/transaction), account maintenance fee/commission on turnover, which is N1/mille (an acronym commonly used in the banking sector. It means per thousand. Thus, in the COT explained above, banks are allowed to charge N1 per N1,000 debit transaction on current accounts).

Others are ATM card maintenance charge (N52.50 monthly), in-branch statement printing (N21.50/page), cash withdrawals/deposits; while users of Unstructured Supplementary Service Data (USSD) services pay N6.98 per transaction.

While these deductions have been approved by the CBN, several others are not categorised. Daily Trust found out that banks now charge 7.5 per cent as Value Added Tax (VAT) per money transfer made on the NIBBS instant transfer platform. There is also a commission by banks for such transfers, among others.

There are also cases of the approved charges being slammed on account holders multiple times on a single transaction, or even when there is no transaction at all. For instance, a transaction could attract several text messages, with each attracting a charge for the customer. The same scenario could apply for commission on turnover charges, account maintenance fees and stamp duty charges.

It is worthy to note that some of these charges are avoidable. For instance, using an ATM that is not your bank’s and opting not to receive text message alert but only email notification on transactions.

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When Daily Trust contacted the CBN to speak on these constant complaints, its spokesman, Mr Nwanisobi, said, “What we do is that whenever we get these complaints, they are thoroughly investigated. If they are found to be true, the CBN makes sure that these customers are properly refunded. And we have so far recovered N89bn.”

The recently recovered figure indicates that the apex bank has the will to punish commercial banks for bad behaviour.

However, as Nwanisobi stated, except when customers make formal complaints, the CBN sees no evil.

It’s extortion – Experts

Munir Aliyu, a financial expert who worked with both old and new generation banks, attributed multiple deductions by banks to “laziness to think out of the box to get big money.”

According to him, “Most of the banks are looking for small money from vulnerable customers because they don’t want to give loans to serious investors.

“Instead, they tax their customers dry because if you know the money they make in a month from these needless deductions, you will not take it lightly.

“Many banks don’t want to give loans to farmers or manufacturers; instead they prefer to tax petty customers.”

The arbitrary charges are on top of issues of growing customer dissatisfaction with commercial banks in Nigeria. For instance, a previous poll established that as far back as 2013, “customers have become more intelligent on the range of bank services.”

The poll sought the opinions of banking customers on their relations and service delivery of Nigerian banks. It established that the Federal Competition and Consumer Protection Commission (FCCPC) had received a large number of complaints from bank customers over alleged hidden and unexplained charges.

In March, 2010, FCCPC organised a consumer interactive forum, where the CBN directed commercial banks to fully disclose all rates and charges associated with their products and services to stem all forms of sharp practices. Up till now, the charges keep coming and no bank has been punished.

The survey established that, overall, the majority (61 per cent) agreed that customers were being exploited by banks through “hidden” charges. This was followed by 19 per cent of the respondents, who disagreed, and 16 per cent that neither agreed nor disagreed. 11 per cent strongly agreed that bank customers were being exploited, while a meagre four per cent strongly disagreed.

Daily Trust

Related Topics:bank charges Customers excessive Featured

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Xenophobic Attacks: NANS Threatens Shutdown of MTN, MultiChoice, Stanbic IBTC

Published

2 hours ago

July 10, 2026

Trends Admin

Xenophobic Attacks: NANS Threatens Shutdown of MTN, MultiChoice, Stanbic IBTC

The President of the National Association of Nigerian Students (NANS) has declared a nationwide protest against South African interests, threatening to shut down the operations of MTN and MultiChoice while urging Nigerians to close their accounts with Stanbic IBTC Bank. According to the student leader, the planned action is in response to South Africa’s treatment of Nigeria and Nigerians. He said NANS is prepared to mobilise students across the country to ensure the protest is carried out. “We are going to shut down MTN and MultiChoice. We will force Nigerians to close their accounts with Stanbic IBTC Bank,” the NANS President declared. He maintained that the protest is aimed at putting pressure on South African-linked companies operating in Nigeria, calling on students and members of the public to support the action.

The declaration is the sharpest turn yet in a standoff that has been building for months over the recurring xenophobic attacks against Nigerians in South Africa. The attacks have reportedly claimed multiple lives, destroyed businesses, and left many Nigerians displaced. In May 2026, NANS South-West Zone D issued a similar warning, threatening to organise peaceful picketing and mass advocacy against South African business interests, singling out MTN Group and MultiChoice Group. At the time, the zonal coordinator stated: “It is morally indefensible for businesses to thrive in an environment where the lives of Nigerians are protected, while Nigerians are subjected to fear and violence elsewhere”. NANS has framed the protest as a direct response to what it describes as South Africa’s failure to protect foreign nationals, particularly Nigerians. The student body expressed outrage over what it called a recurring pattern of hostility, with the latest incidents triggering a fresh wave of anger. In June 2026, NANS had already warned that Nigerian students were fully mobilised to shut down South African businesses operating on Nigerian soil if the killings did not stop. The association declared at an emergency press conference: “We are watching the countdown to the June 30 deadline, and we are sending a direct, loud message to Pretoria: nobody has the monopoly to violence”.

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The students are not acting in isolation. The National Assembly has itself been drawn into the dispute. In July 2026, the Senate called on President Bola Tinubu to sever diplomatic ties with South Africa over the recurring attacks. Senator Adams Oshiomhole proposed at plenary that the operating licences of firms such as MTN and MultiChoice be revoked, and even suggested the nationalisation of MTN Nigeria, alongside a thirty-day boycott of its services, invoking the principle of reciprocity in international relations. Senator Abdul Ningi stressed that mere expressions of concern would not solve the problem: “Talking and lamenting will not help. Let us sever relations with South Africa. There must be action”. Senator Babangida Hussaini lamented that Nigerians are being vilified and killed not only in South Africa, stressing that Nigeria’s foreign policy should be strengthened to effectively address the situation. Other lawmakers, including Senate Chief Whip Mohammed Monguno, also condemned the persistent attacks on Nigerians and the destruction of their businesses in South Africa, urging the Federal Government to take decisive action. However, the Senate ultimately rejected the proposal to nationalise South African companies, following an appeal by Deputy Senate President Barau Jibrin, who urged restraint pending a comprehensive investigation by the Senate Committee on Foreign Affairs. Jibrin cautioned: “We lead in Africa. We set the pace. Whatever we need to do, we need to be very careful”.

What gives the threat its weight, and also its complications, is the sheer scale of South African investment in Nigeria. MTN Nigeria remains the MTN Group’s largest and most profitable market, closing 2025 with a subscriber base of approximately 87.26 million, roughly 28 per cent of the group’s global total, and generating some 3.45 billion dollars in revenue for the year. MultiChoice, operator of the DStv and GOtv platforms, has for years counted Nigeria as its biggest market outside South Africa, while Stanbic IBTC Holdings, tied to South Africa’s Standard Bank, is a significant player in the Nigerian financial services space. Together, these firms employ thousands of Nigerians and contribute meaningfully to tax revenue. That interdependence has drawn caution from economists who warn that a broad shutdown could rebound on the very citizens it aims to protect, through job losses, service disruptions and weakened investor confidence, while exposing Nigerian businesses in South Africa to retaliation. The pattern is not new either. South African firms became proxy targets during earlier bouts of xenophobic violence in 2008, 2015 and 2019, each time weathering licence revocation calls that diplomacy ultimately defused.

Earlier, NANS had issued a four-day ultimatum to South African business interests operating in Nigeria, demanding their immediate evacuation from the country. The directive, announced in a press statement by Comrade Bestman Okereafor, NANS National Executive Director for Corporate and Private Sector Engagement, followed what the student body described as the continued exploitation of Nigerian soil while South Africa perpetuates systemic oppression against Africans in their own country. “The attention of NANS has been drawn to the continuous attacks, intimidation, and forced expulsion of law-abiding, hardworking Nigerians and other Africans from South Africa,” the statement read. “As the largest student body in Africa, we are giving South African business interests four days to evacuate Nigeria. The reason is straightforward: South Africans cannot oppress our people in their country and expect their businesses to thrive here without consequence”. NANS underscored Nigeria’s historical role in supporting South Africa during the apartheid struggle, arguing that the current treatment of Africans in South Africa betrays the spirit of solidarity that once defined African unity. “It is on record that Nigeria played a pivotal role in the fight against apartheid. We cannot, and will not, tolerate disrespect, disloyalty, and global embarrassment from a nation that once stood with us”.

As of the time of filing this report, neither the Presidency nor the affected companies—MTN Nigeria, MultiChoice Nigeria, and Stanbic IBTC Bank—have issued official statements responding to the latest threat from NANS. Further details on the planned nationwide protest and the exact timeline are expected as the situation develops.

Xenophobic Attacks: NANS Threatens Shutdown of MTN, MultiChoice, Stanbic IBTC

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Relief for Last-Mile Delivery Operators as TSS Motors launches Forland T5 light Trucks

Published

6 hours ago

July 10, 2026

Trends Admin

Relief for Last-Mile Delivery Operators as TSS Motors launches Forland T5 light Trucks

Nigeria’s fast-growing logistics and distribution sector has received a major boost as Transit Support Services Ltd. (TSS Motors) unveiled the locally assembled Forland T5 light truck, a new range of mini trucks designed to slash the high operating costs that have long plagued last-mile delivery operators.

The company said the introduction of the Forland T5 series, assembled at its Enugu plant, is aimed at providing businesses with a durable, affordable and fuel-efficient solution for the most expensive stage of the supply chain—the final delivery to customers.

Although the last mile is typically the shortest leg of the distribution process, it remains the most complex and costly, accounting for a significant share of transportation and shipping expenses.

By leveraging local vehicle assembly, TSS said it is passing on substantial cost savings to logistics operators and businesses.

Speaking on the new product, TSS Senior Sales Executive, Miss Blessing Aluh, said the company developed the Forland T5 in response to the growing demand for practical and cost-effective delivery vehicles.

“Businesses have long been searching for a practical solution to the high cost of last-mile deliveries. With our Forland T5, that much-awaited solution has finally arrived in Nigeria.

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“TSS has come to the rescue with a truck specially adapted for last-mile delivery because of its low maintenance cost. It is guaranteed to reduce operating expenses and make deliveries more efficient,” she said.

According to Aluh, the T5 is built by Forland, the specialised light truck division of Foton, and manufactured to high international quality standards.

The truck is powered by an 82-kilowatt DAM 15R petrol engine noted for its fuel efficiency and low emissions.

It is offered in both box-body and cabin-and-chassis configurations, giving businesses the flexibility to choose a model that best suits their operations.

Aluh explained that the cabin-and-chassis version would enable customers to fit a wide range of specialised bodies, including flatbeds, enclosed box bodies, drop-side bodies, refrigerated vans, mobile clinics and mobile vending units for food, snacks and beverages.

The air-conditioned cabin comfortably seats the driver and a salesperson, while the vehicle comes with a manual transmission and hydraulic braking system.

To meet varying operational needs, TSS is offering the Forland T5 in 1.5-tonne and 2-tonne payload variants, alongside a 2.5-tonne dual-fuel CNG/petrol version.

Like other Forland vehicles marketed by the company, the T5 is backed by nationwide after-sales support, including a one-year or 100,000-kilometre warranty.

TSS said local assembly has also made the vehicle more affordable, with the flatbed version priced at less than ₦16 million.

Aluh noted that customers have the option of buying the flatbed model and building a customised body elsewhere or purchasing a factory-fitted box-body version directly from the company.

“What this means is that you can build your box body elsewhere or customise it the way you need it. But we also supply box bodies,” she said.

She added that TSS can also facilitate bank financing for qualified buyers, enabling customers to spread payment for the vehicles over an agreed period.

Relief for Last-Mile Delivery Operators as TSS Motors launches Forland T5 light Trucks

Business

Nigeria’s stock market surpasses South Korea as world’s top-performing equity market

Published

10 hours ago

July 10, 2026

Trends Admin

Nigeria’s stock market surpasses South Korea as world’s top-performing equity market

Nigeria’s stock market has emerged as the world’s best-performing equity market, overtaking South Korea as a combination of stronger economic fundamentals, policy reforms, improved foreign exchange liquidity and renewed investor confidence continues to fuel a remarkable rally on the Nigerian Exchange (NGX).

The latest performance marks a significant milestone for Nigeria’s capital market, with analysts attributing the surge to sustained reforms, firmer global oil prices, currency stability and growing optimism among domestic and international investors.

While South Korea’s market has struggled amid a global technology sell-off and a weakening currency, Nigeria has benefited from improving macroeconomic conditions that have boosted investor sentiment and strengthened capital inflows.

One of the major factors behind the contrasting performances has been currency movements.

The South Korean won has depreciated by about five per cent against the US dollar this year, making it one of Asia’s weakest-performing currencies and reducing returns for foreign investors.

In contrast, the naira has appreciated by about four per cent against the dollar since January, significantly enhancing dollar-denominated returns for foreign investors and helping propel the Nigerian market to the top of global rankings.

The rally has been driven largely by financial services stocks, with banking and insurance companies posting substantial gains.

Among the standout performers is Fortis Global Insurance Plc, which has delivered an estimated 1,400 per cent return in dollar terms this year, making it one of the strongest-performing stocks on the exchange.

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Unlike South Korea, whose stock market is heavily concentrated in technology and artificial intelligence companies, Nigeria’s listed firms have relatively limited exposure to the sector.

That difference has shielded the local market from the recent global sell-off in technology stocks, allowing investors to maintain confidence in Nigerian equities.

Investor sentiment also received a significant boost after S&P Dow Jones Indices (S&P DJI) placed Nigeria on its 2027 Country Classification Watchlist for a possible upgrade from a “Standalone” market to a Frontier Market.

Although the move does not amount to an immediate reclassification, it is widely regarded as a major endorsement of Nigeria’s ongoing capital market reforms.

According to S&P DJI, improvements in market regulation, accessibility, transparency, enforcement and overall market integrity were among the key reasons for placing Nigeria under review.

The global index provider noted that continued policy consistency and operational resilience would be crucial in determining whether Nigeria qualifies for Frontier Market status during the 2027 review.

The Nigerian market extended its impressive rally on July 8, 2026, when the NGX All-Share Index climbed 2.27 per cent to close at 242,459.98 points, compared with 237,083.28 points recorded a day earlier.

Market capitalisation also increased by N3.45 trillion, rising to N155.59 trillion as investors returned strongly to the market.

The latest gains pushed the market’s year-to-date return to 55.81 per cent, a sharp rebound from 46.78 per cent recorded on July 7 and effectively erased losses suffered during the June market correction.

Telecommunications giant Airtel Africa played a pivotal role in the rally after its shares appreciated by the maximum daily limit of 10 per cent to close at N5,801.40, providing significant support for the benchmark index.

In a statement, the Nigerian Exchange described the S&P DJI watchlist decision as a positive signal that Nigeria’s recent regulatory and structural reforms are gaining recognition from one of the world’s leading index providers.

The exchange noted that while the watchlist status does not automatically translate into an upgrade, it demonstrates growing international confidence in the direction of Nigeria’s capital market.

Nigeria’s capital market has undergone a series of reforms led by the Securities and Exchange Commission (SEC) in collaboration with NGX Group, the Central Securities Clearing System (CSCS) and other stakeholders.

The reforms have focused on strengthening investor protection, improving market transparency, enhancing operational efficiency, modernising post-trade infrastructure and aligning Nigeria’s market with international best practices.

According to the Director-General of the SEC, Dr. Emomotimi Agama, the Commission remains committed to building a modern and efficient capital market capable of supporting innovation, intelligent investing and long-term economic growth.

He said the reform agenda includes faster settlement systems, tokenised securities and deeper derivatives markets aimed at making Nigeria’s capital market more competitive globally.

Agama reaffirmed the SEC’s commitment to maintaining a fair, orderly and transparent market while working closely with exchanges, market operators and other stakeholders to strengthen investor confidence and market integrity.

Also reacting to the development, NGX Group Managing Director and Chief Executive Officer, Temi Popoola, described Nigeria’s inclusion on the S&P DJI watchlist as an encouraging endorsement of the country’s reform efforts.

He said the recognition reflects the collective work of regulators, market infrastructure institutions and operators in building a more transparent, efficient and globally competitive marketplace.

According to Popoola, although the watchlist status does not yet amount to a formal market reclassification, it validates the progress already made and reinforces Nigeria’s attractiveness to both domestic and international investors.

He added that the NGX would continue working with stakeholders to deepen market liquidity, improve accessibility, strengthen investor confidence and sustain reforms capable of positioning Nigeria as a preferred investment destination.

Despite the optimism surrounding the market’s global ranking, some analysts believe the achievement should be viewed with caution.

Market analyst and investor Adeleke Adebayo argued that the development would only be meaningful if it translates into tangible benefits for ordinary Nigerians and local investors.

According to him, celebrating Nigeria’s emergence as the world’s best-performing stock market means little if the gains do not improve living standards or strengthen the broader economy.

He noted that the capital market lost more than N13 trillion in market capitalisation during the recent correction and said attention should remain focused on addressing inflation, economic growth, job creation and the welfare of citizens.

Adebayo questioned whether outperforming countries such as South Korea would have any practical value unless it leads to stronger businesses, improved household incomes and measurable economic progress.

He maintained that the true success of the market should ultimately be judged by its ability to support economic development, attract sustainable investment and positively impact the lives of Nigerians.

While opinions differ on the significance of the latest ranking, analysts agree that maintaining the market’s momentum will depend on sustained policy consistency, macroeconomic stability, stronger corporate earnings and the successful implementation of ongoing reforms aimed at deepening Nigeria’s capital market.