Zenith, Access, GTB, 8 others earn N72.7bn from account maintenance – Newstrends
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Zenith, Access, GTB, 8 others earn N72.7bn from account maintenance

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Zenith, Access, GTB, 8 others earn N72.7bn from account maintenance

A total of eleven banks listed on the floor of the Nigerian Exchange generated N72.7bn from account maintenance charges in the half year of 2023.

Data obtained from the half-year financial statements of these listed commercial banks on the Nigerian stock market showed this figure.

Zenith Bank, Access, GTB are clearly the top three banks that raked in the largest amount from the account maintenance fee in the first half of the year, according to a report by Nairametrics on Sunday.

The three banks are followed by United Bank for Africa, First bank and First City Monument Bank.

The remaining five banks on the list are Stanbic IBTC, Sterling Bank, Fidelity Bank, Wema Bank and Unity Bank.

Zenith Bank generated a sum of N21.02bn from account maintenance, representing 28.91 per cent of the total income of the 11 banks.

Access Holdings recorded N13.36bn, a 10.97 per cent year-on-year increase in its account maintenance income.

GTCO generated N10.48bn, which is 11.08 per cent year-on-year increase over N9.44bn recorded in the half-year 2022.

UBA generated N9.64bn from account maintenance income between January and June 2023, representing a 46.11 per cent increase compared to N6.59bn recorded in the corresponding period of 2022.

First Bank of Nigeria’s account maintenance income was put at N5.19bn. This is a decline of 43.5 per cent from N9.17bn generated in half-year 2022.

FCMB came sixth on the list with N3.85bn in revenue from account maintenance, which is 16.3 per cent higher than N3.32bn recorded in 2022.

The other five banks are Stanbic IBTC –N2.64bn; Sterling Bank – N2.39bn; Fidelity Bank – N1.76bn; Wema Bank – N1.63bn and Unity Bank – N745m.

The amount generated from account maintenance charges in the half-year of 2023 represents a 7.44 per cent increase compared to N67.69bn recorded in the corresponding period of 2022.

The fees are charged on current accounts only regarding debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank.

Banks’ earnings from account maintenance charges may be seen as low compared to other revenue streams.

A directive by the Central Bank of Nigeria, on bank charges to commercial banks allows them to charge their customers a “negotiable” N1 per mille.

 

This means banks can charge N1 per N1,000 debit transactions on current accounts. Banks’ account maintenance charges come in the form of COT ( as Commission on Turnover) which is a charge levied on customer withdrawals by their banks.

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Breaking: After two years, UAE resumes visa issuance to Nigerians 

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Breaking: After two years, UAE resumes visa issuance to Nigerians 

Nigerians who could not travel to Dubai in the United Arab Emirates for about two years due to diplomatic row and flight suspension can now heave a sigh of relief.

The Federal Government on Monday announced that the United Arab Emirates (UAE) had lifted the visa restriction on Nigerian travellers, starting from July 15, 2024.

Minister of Information, Mohammed Idris, disclosed this while briefing State House correspondents after the weekly Federal Executive Council (FEC) meeting.

The announcement came more than two years after the UAE suspended visa issuance to Nigerians following the protracted diplomatic row with Nigeria.

It also came about two months after UAE national carrier Emirates Airlines announced the resumption of flights to Nigeria.

The airline said in May that its daily Lagos-Dubai flights would resume from October 1, 2024.

Emirates Airlines suspended its Dubai-Lagos flights in 2022 over its inability to repatriate trapped funds in Nigeria in the heat of the diplomatic fireworks between the two countries.

Nigeria and the UAE have a long history of restriction of flights between both countries based on certain unresolved issues surrounding the Bilateral Air Services Agreement (BASA). Visa restrictions later surfaced as diplomatic fireworks continued between Nigeria and the UAE, which is a top destination for Nigerian migrants and tourists.

In September 2023, President Bola Tinubu met with UAE President, Mohamed bin Zayed Al Nahyan, in Abu Dhabi, to smoothen the rough edges in the diplomatic relations between the two countries.

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Why I invest massively in Nigeria despite harsh operating environment – Dangote

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Alhaji Aliko Dangote, the CEO of Dangote Group

Why I invest massively in Nigeria despite harsh operating environment – Dangote

The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, has revealed why he continues to site big and numerous businesses in Nigeria despite the harsh operating environment.

Speaking at a press briefing in Lagos on Sunday, Dangote stated that his decision to invest massively in Nigeria is spurred by patriotism and love for the country.

He said it made him feel better and fulfilled that he was creating job opportunities for thousands of Nigerians.

He also said his wish was to be remembered for the value he added to Nigeria’s economic development after he was gone.

On what he was planning to do next considering that the refinery, which is the largest single train edifice in the world, has been successfully delivered, Dangote said government’s policies remain the key to what he will invest in.

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“Policy inconsistencies could affect what we do. We have gas-related projects in our plans, but this depends on how government policies favour our operations,” he said.

“Manufacturers create jobs, they invest their money to help the economy, but when you import, you are encouraging poverty.

“The best way is to build factories and produce what you import. The PIA is saying that once there is enough capacity, there is no reason to import.

“In Africa today, only Algeria and Libya have the capacity to feed their local markets. Our refinery has the capacity to satisfy our local demands and we have more to export,” he said.

Dangote also said he believes his refinery will stand the test of time, adding that green energy is good, but it will take a long time to replace fossil fuel.

Why I invest massively in Nigeria despite harsh operating environment – Dangote

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Nigeria’s inflation rate now 34.19%, says NBS report

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Nigeria’s inflation rate now 34.19%, says NBS report

A new inflation rate has been released for Nigeria, with the number increasing from 33.95% in May 2024 to 34.19% in June 2024.

This was contained in a document titled “CPI and Inflation Report June 2024” released on Monday by the National Bureau of Statistics (NBS).

The report said, “In June 2024, the headline inflation rate increased to 34.19% relative to the May 2024 head line inflation rate which was 33.95%.”

The NBS said looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24% points when compared to the May 2024 headline inflation rate.

On a year-on-year basis, said the Bureau, the headline inflation rate was 11.40% points higher compared to the rate recorded in June 2023, which was 22.79%.

The document said this shows that the headline inflation rate (year-on-year basis) increased in the month of June 2024 when compared to the same month in the preceding year (i.e. June 2023).

The NBS further noted that on a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, which was 0.17% higher than the rate recorded in May 2024 (2.14%).

The report said this means that in the month of June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024.

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