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Customers outraged over excessive bank charges

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5 years ago

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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

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EXEED to Storm Nigeria’s Premium Auto Market in December, courtesy of Versat 

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August 23, 2026

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EXEED to Storm Nigeria’s Premium Auto Market in December, courtesy of Versat 

 

Nigeria’s premium automotive market is set for a new entrant as Versat Automobile Limited prepares to introduce EXEED, the premium mobility brand of Chery Automobile, to the country in December 2026.

The arrival of EXEED is expected to further intensify competition in Nigeria’s fast-evolving premium vehicle segment, with the brand bringing together advanced technology, distinctive design and contemporary luxury under its global philosophy, “Born for More.”

According to Versat, EXEED is designed for consumers who seek more than conventional mobility and are driven by a desire for greater possibilities in life, career and personal achievement.

Drawing on Chery Automobile’s extensive research and development capabilities, the brand is positioned at the intersection of sophisticated design, intelligent technology and premium driving experience—qualities Versat believes align with the expectations of Nigeria’s increasingly discerning automotive consumers.

General Manager, Sales, Versat Automobile Limited, Christopher Irumudomon, described the planned entry as a significant development for the company and Nigeria’s premium automotive market.

“The arrival of EXEED represents an exciting new chapter for premium mobility in Nigeria,” Irumudomon said.

“We are looking forward to introducing Nigerians to a brand that challenges convention, embraces exploration, and is truly Born for More.”

Ahead of the December launch, Versat said it would unveil more details about EXEED, including its technology, design philosophy and performance capabilities, as anticipation builds towards the brand’s official Nigerian debut.

EXEED is Chery Automobile’s premium automotive marque, developed around intelligent technology, sophisticated design and an enhanced driving experience. Guided by its “Born for More” philosophy and Spirit of Exploration, the brand seeks to combine advanced automotive technologies with distinctive styling and a forward-looking approach to premium mobility.

The Nigerian launch also represents a new phase in Versat Automobile’s expansion in the local automotive market.

Established in 2024, the company commenced its Nigerian market operations in 2026 with C&C Trucks, focusing on performance, durability, quality, reliability and customer support.

With the introduction of EXEED, Versat is now positioning itself to play a more prominent role in Nigeria’s passenger vehicle market, particularly the growing premium segment.

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CBN Governor, NADDC DG to Lead LCCI Debate on Vehicle Financing as Alternative to Fuel Subsidy

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August 22, 2026

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CBN Governor, NADDC DG to Lead LCCI Debate on Vehicle Financing as Alternative to Fuel Subsidy

 

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, are among key stakeholders expected at a high-level symposium examining whether vehicle financing can provide a sustainable alternative to fuel subsidy as a tool for improving mobility in Nigeria.

Organised by the Auto Sectoral and Allied Group of the Lagos Chamber of Commerce and Industry (LCCI), the one-day symposium is scheduled for September 17, 2026, at the Henry Fajemirokun Hall, LCCI, Victoria Island, Lagos.

Themed “From Subsidy to Credit: Can Vehicle Financing Replace Fuel Subsidy as Nigeria’s Mobility Equalizer?”, the event will bring together stakeholders across the automotive, financial and transport sectors to examine how affordable credit can expand vehicle ownership, support fleet renewal and reduce the burden of rising transportation costs.

The organisers said the removal of fuel subsidy and its impact on transport costs had made it imperative to rethink how mobility could be made more affordable and sustainable.

Rather than relying largely on interventions aimed at keeping fuel prices low, the symposium will examine whether a robust vehicle-financing ecosystem can enable individuals, transport operators and small businesses to acquire vehicles through affordable and sustainable credit arrangements.

Discussions will focus on automotive lending, leasing, fleet renewal and the role of banks, development finance institutions and other financial players in expanding access to vehicle ownership.

The symposium is also expected to interrogate major barriers to automotive financing, including high interest rates, short loan tenures, foreign exchange pressures, high vehicle prices, credit risks and the limited availability of financing products tailored to Nigeria’s automotive market.

Chairman of the LCCI Auto Sectoral and Allied Group and Deputy Managing Director of R.T. Briscoe Nigeria Plc, Dr Femi Eghuaikhide, said the symposium was coming at a critical time when Nigeria needed to rethink how mobility could be made accessible to a wider population.

“The question before us is no longer simply how to make fuel cheaper, but how to make mobility more affordable and sustainable for Nigerians. Vehicle financing has the potential to become a powerful mobility equalizer if we can develop the right credit structures, realistic repayment terms and strong collaboration between government, financial institutions and automotive industry stakeholders.”

Eghuaikhide said the symposium would provide a platform for stakeholders to move beyond identifying the challenges and develop practical financing solutions capable of supporting vehicle ownership, public transportation and the growth of Nigeria’s automotive industry.

Also speaking, Chairman of the Symposium Organising Committee and Chief Operating Officer of Bras Motors Limited, Austin Akpovili, said the event was designed to generate practical and actionable solutions.

“We are bringing the right stakeholders to one table because mobility is not only an automotive issue; it is an economic issue. Our objective is to examine how access to affordable vehicle credit can transform the lives of individuals, transport operators and businesses, while creating a stronger and more sustainable automotive ecosystem for Nigeria.”

Akpovili said participants would also have the opportunity to examine existing financing models and identify innovative approaches to make vehicle acquisition accessible to a broader segment of the population.

The event is expected to attract automobile manufacturers and dealers, commercial banks, development finance institutions, leasing and insurance companies, transport operators, government agencies, policymakers and other stakeholders across the automotive value chain.

Beyond vehicle ownership, experts will examine how affordable financing could accelerate the renewal of Nigeria’s ageing vehicle fleet, improve public transportation and stimulate demand for locally assembled vehicles and locally manufactured automotive components.

The LCCI Auto Sectoral and Allied Group has traditionally used its annual symposium to bring government, business leaders, financial institutions and automotive stakeholders together to address critical issues confronting the industry.

With this year’s theme shifting the conversation “from subsidy to credit,” the symposium is expected to examine whether Nigeria can move from short-term consumption support to a sustainable financing model that promotes asset ownership, productivity and economic empowerment.

The organisers said recommendations from the symposium would be presented as possible policy and industry solutions for making vehicle financing a stronger component of Nigeria’s broader mobility and economic development strategy.

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Just When You Thought Fuel Prices Were Falling – Dangote Refinery Pulls the Trigger Again

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August 21, 2026

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Just When You Thought Fuel Prices Were Falling – Dangote Refinery Pulls the Trigger Again

Just When You Thought Fuel Prices Were Falling – Dangote Refinery Pulls the Trigger Again

Lagos, Nigeria – Barely two weeks after slashing its petrol price to N1,165 per litre, the Dangote Petroleum Refinery has increased its Premium Motor Spirit (PMS) gantry price by N20 to N1,185 per litre, effective midnight on Friday, August 21, 2026. The adjustment comes amid a sustained rally in global crude oil prices, with Brent futures climbing above $93 per barrel as tensions between the United States and Iran continue to unsettle energy markets.

The price review, reported by Petroleumprice.ng, comes as competition among fuel suppliers continues to reshape the Lagos depot market. At N1,185 per litre, Dangote’s petrol remains N15 cheaper than the N1,200 being quoted at Integrated Oil and Gas, African Terminals and NIPCO, while Pinnacle Oil and Gas sells at N1,190. More significantly, the new price remains below the current import-related benchmark of approximately N1,218 per litre as reported by the Major Energy Marketers Association of Nigeria (MEMAN), meaning Dangote’s revised gantry price is still N33 below the cost of importing the product.

The refinery’s decision comes against a backdrop of persistent global crude supply fears. Brent crude extended its rally for a fifth consecutive day on Thursday, reaching a three-week high as diplomatic efforts between Washington and Tehran remained stalled. The international benchmark rose 1.95 per cent to $93.48 per barrel, while West Texas Intermediate (WTI) gained two per cent to $86.12 per barrel. The sustained rally has pushed crude prices to their strongest levels since July, with Brent climbing more than seven per cent over five sessions.

US President Donald Trump’s recent threat of “the most crushing economic operation ever taken against any country” has heightened fears of stricter sanctions enforcement against Iran. ING commodities strategists Warren Patterson and Ewa Manthey noted that the warning signals “further escalation in US efforts to isolate Iran.” The UAE has also suspended all financial and economic transactions with Iran, adding another layer of uncertainty for energy markets already dealing with disruptions across the Gulf region.

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Despite the rise in crude futures, analysts observe that the real stress in the oil market is downstream. Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that “crude is available, diesel is not,” emphasising that the market continues to underestimate the extent of supply disruptions affecting refined fuel markets. The diesel crack spread in the United States crossed the $100-per-barrel mark this week for the first time, reaching as high as $102 per barrel on Monday before easing to about $100.

The refinery’s latest price increase also coincides with a rise in the price of diesel. Dangote raised its Automotive Gas Oil (AGO) gantry price by N100 to N1,670 per litre, effective from midnight Friday. This places the refinery’s diesel price N21 above the current landing cost of N1,649, though still N30 below rates quoted by several Lagos depots, including African Terminal, Integrated, Duport, Ibachem, Gulf Treasure and Pivot. The diesel price hike is expected to impact transport, manufacturing, and power generation costs across the economy.

For Nigerian consumers, the key question remains whether movements in depot prices will translate into corresponding changes at the pump. Following Dangote’s August 6 price reduction to N1,165, checks in Lagos showed several filling stations continuing to sell petrol at between N1,240 and N1,260 per litre, raising fresh questions about how quickly changes in refinery and depot prices are transmitted to consumers. A lower gantry price does not automatically determine the final retail price, which also reflects transportation, logistics, dealer margins and other operating costs.

The refinery’s entry into the domestic fuels market has fundamentally altered the competitive dynamics of Nigeria’s downstream petroleum industry. Rather than simply competing with imported products, the facility—with its 650,000 barrels-per-day capacity—is increasingly competing directly with independent depots and other suppliers for the same pool of marketers. Officials of the Dangote Group had yet to comment on the reported price increases as of press time.

As global crude prices remain elevated amid geopolitical uncertainty and the refinery assumes an increasingly dominant position in Nigeria’s fuel supply chain, its pricing moves are being closely watched as a barometer for the downstream petroleum market. The potential for further price volatility persists as analysts warn that Brent could approach $95 and potentially $100 per barrel if disruptions to shipping through the Strait of Hormuz continue.

Just When You Thought Fuel Prices Were Falling – Dangote Refinery Pulls the Trigger Again

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