Business
Customers outraged over excessive bank charges
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
Auto
Coscharis Motors clinches Nigeria’s Multi-Luxury Company Award as Range Rover Autobiography emerges Luxury SUV
Coscharis Motors clinches Nigeria’s Multi-Luxury Company Award as Range Rover Autobiography emerges Luxury SUV
It is a double honour for Coscharis Motors Plc, one of the subsidiaries of the respected conglomerate, Coscharis Group, as it was declared Multi-Luxury Company of the Year and one of its iconic luxury brands, Range Rover Autobiography, was adjudged the Nigeria’s Luxury SUV of the Year at the 2024 edition of the Nigeria Auto Journalists Association Awards.
The well attended event was held recently at the prestigious Oriental Hotels, Lagos.
Coscharis Motors, a household name in topnotch globally respected luxury automobile brands in Nigeria, has been the exclusive representative of the British iconic luxury brand of the Jaguar Land Rover and the German pride in the luxury segment of the BMW brand over many decades.
The company in 2023 added another new luxury brand from United Kingdom into the Nigeria market which is the Grenadier from the Ineos group in UK. The Grenadier is a brand new product globally which is equally being represented in Nigeria by Coscharis Motors as a new addition to its existing ‘House of luxury’ when it comes to automobile of repute.
The luxury SUV category was keenly contested with other tested luxury brands but the Range Rover Autobiography came tops, according to the organizers, after strong consideration of the market acceptance of the Autobiography in all ramifications.
The All New Range Rover Autobiography variant is revolutionary, reliable and a class on its own with its special appeal, style that resonates with its priority audience when it comes to luxury, class, comfort and performance.
Receiving the award on behalf of Coscharis Motors, the General Manager, Marketing and Corporate Communications, Coscharis Group, Mr. Abiona Babarinde, dedicated the award to all the Coscharis Motors customers, especially the luxury brand enthusiasts for their acceptability of all the luxury brands in the Portfolio namely the Jaguar Land Rover, BMW and the new Grenadier respectively as their preferred luxury automobile of choice.
He said, “These awards only reconfirm our expertise in delivering top notch luxury experience to our premium customers while maintaining the global standard of brand positioning to discerning customers in the ever dynamic Nigerian market.
“Representing these globally respected iconic brands over the years exclusively in Nigeria involves consistent delivering of value for money that involves the total luxury experience from the point of brand awareness to the purchase stage and the aftersales service experience to deliver the peace of mind required.”
Group Managing Director of Coscharis Motors Plc, Mr. Josiah Samuel, also dedicated the awards to the company’s ever loyal customers for their patronage and acceptance of the brands with a promise to continually create more value in the automobile industry in Nigeria.
He said, “There can’t be another best way to end the business year in 2024 than with these set of prestigious awards despite all the business challenges in the year and more importantly that the awards are coming from a very critical stakeholder / partner like the media.”
The award event attracted various stakeholders that are players in the automotive sector in Nigeria.
Auto
Leadership by example: FRSC Corps Marshal leads field operations, patrol highways
Leadership by example: FRSC Corps Marshal leads field operations, patrol highways
By Bisi Kazeem
As the year winds down and Nigerians embark on end-of-year travels, the Federal Road Safety Corps (FRSC) has intensified its efforts to curb road crashes and ensure safer highways. Leading this charge is the Corps Marshal, Shehu Mohammed, who has set a sterling example of sacrificial leadership by actively participating in frontline operations during this critical period.
The end of the year is a notoriously perilous time on Nigeria’s roads, marked by increased traffic, heightened road traffic crash risks, and a surge in reckless driving.
However, under the proactive leadership of the Corps Marshal, the FRSC rolled out an unprecedented campaign to reduce road traffic crashes and fatalities, ensuring that the festive season is marked by joy rather than tragedy.
True leadership is not defined by words but by action. The Corps Marshal exemplifies this by personally leading field operations, patrolling highways, monitoring traffic flows, and directly engaging with road users.
His visible presence has reinvigorated the morale of FRSC officers and demonstrated to the nation that leadership is about service and sacrifice.
He defied insecurity on the highways and embarked on a traffic monitoring operation from Abuja, the Federal Capital, through Kogi, Ekiti, Ondo, Owo, Ore, down to Edo and Delta.
His decision to lead from the front underscores his commitment to the FRSC’s mission of saving lives and highlights the urgent need for compliance with traffic rules and regulations.
From the beginning of the Ember Months sensitisation campaign in September, the Corps had gone ahead of time, implementing series of robust measures aimed at addressing road safety challenges during the festive season. These remedies include; increased patrols and checkpoints as additional officers and vehicles have been deployed in strategic points on highways to monitor and enforce compliance with traffic laws; organised nationwide safety campaigns targeting speed violations, drunk driving, overloading and seatbelt use.
These campaigns educate drivers on the dangers of reckless behaviours and emphasize the importance of safe driving practices.
The Corps also ensured Emergency Response Preparedness: ambulances, tow trucks, and rescue teams are on standby to ensure rapid responses to emergencies, reducing fatalities and injuries in the event of crashes.
Knowing that the task of making the highways safe is a collective action, FRSC went into the season with strengthened partnerships with key stakeholders, including the Nigeria Police Force, transport unions, traditional rulers and local communities, to foster a united front in the battle against road crashes.
The Corps Marshal’s leadership has inspired not just his officers but also the general public.
His direct involvement sends a clear message that road safety is a shared responsibility requiring the commitment of all stakeholders.
The Corps Marshal’s hands-on approach during this critical period has not only motivated the FRSC team but has also restored public confidence in the agency’s commitment to saving lives,” said a motorist who witnessed the Marshal’s activities firsthand on the Niger Bridge.
The monitoring activities carried out across major corridors suggest that the intensified efforts are yielding positive results, with a noticeable reduction in road crashes and fatalities compared to previous years.
The Corps Marshal’s example of sacrificial leadership has brought renewed vigor to the FRSC’s operations, ensuring that every life is valued and protected.
Needless to state that the FRSC Corps Marshal, Shehu Mohammed, is indeed an enigma, a force to be reckoned with and a true example of practical leadership in public service as he leads yet again by example in the fight against road crashes in Nigeria.
Taking active front-line roles, dedicating to sacrificial leadership and willingness to take bold steps to address the challenges facing Nigerian roads.
By setting the pace, he’s inspiring his team and other stakeholders to join forces in the quest for safer roads in Nigeria.
As the festive season continues, let us all join the FRSC as they call on all Nigerians to support its efforts by adhering to traffic rules, avoiding risky driving behaviours, and prioritizing safety on the roads.
Together, with the leadership of the Corps Marshal and the dedication of FRSC personnel, a safer, accident-free festive season is achievable.
The Corps Marshal’s leadership reminds us all that effective leadership requires sacrifice, action, and a deep commitment to service.
As Nigerians embark on their journeys this season, they can take comfort in knowing that the FRSC is working tirelessly to make the roads safer for everyone.
*DCM Bisi Kazeem (Rtd), fsi MNIM anipr, a public relations expert and media guru writes from Lagos, Nigeria.
Auto
FG deploys Lanre Shittu CNG buses as airport shuttle
FG deploys Lanre Shittu CNG buses as airport shuttle
The Federal Government has commenced the deployment of Lanre Shittu Motors (LSM)-branded Compressed Natural Gas (CNG) buses in the nation’s airports for passengers shuttle.
The first batch of the CNG-powered buses has been launched at the Murtala Muhammed Airport, Lagos, at a ceremony attended by the Minister of Aviation and Aerospace Management, Festus Keyamo, and Managing Director, Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Oluwaseun Kuku.
Speaking during the unveiling at the Lagos airport, the minister said the deployment was in line with the directive of President Bola Tinubu.
He said it was part of Nigeria’s commitment to reducing carbon emissions and meeting global climate targets.
‘’What you see here today is a fleet of CNG buses for FAAN to commence passenger movement at all our airports immediately,” the minister said.
He said the newly acquired CNG-powered LSM buses unveiled at the Lagos airport are eco-friendly with zero emission and designed with accessibility features for persons with disabilities.
The deployment, he added, was in compliance with the President’s goal of reducing reliance on traditional fossil fuels of petrol and diesel and promoting sustainable use of CNG to power vehicles in the country.
The introduction of the CNG to power automobiles is one of the Federal Government’s initiatives to ease the impact of fuel subsidy removal on the masses.
The CNG buses, according to the Managing Director of Lanre Shittu Motors, Taiwo Shittu, come in two specifications: a 31-seater for airport shuttle services and a 54-seater for mass transit city buses.
He said they had been equipped with modern amenities, including air conditioning, viewing screens, and charging stations.
With the introduction of the CNG buses, he said LSM aimed to provide a more sustainable and efficient transportation solution not only to Lagos but other parts of the country.
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