Business

Just In: CBN Reduces Electronic Transfer, ATM Withdrawal Charges

Published

3 years ago

December 22, 2019

The Central Bank of Nigeria (CBN) has reviewed downward electronic transfer and ATM fees as well as card maintenance fees.

The new charges were contained in the latest Guide to Charges by Banks and Other Financial Institutions just released by the CBN

According to the CBN, bank customers will now pay N10 for electronic transfers below N5,000, and N25 for electronic transfer between N5,000 and N50,000. Only electronic transfer above N50,000 will attract N50 charge.

This Guide, which replaces the Guide to Charges by Banks and Other Financial Institutions issued in 2017, takes effect from January 1, 2020, and maybe reviewed from time to time to reflect changes in the business environment.

The CBN, therefore, urged financial services providers and their customers alike to acquaint themselves with the provisions of the Guide and be properly guided accordingly.

Previously, bank customers pay N50 charge for electronic transfers below N500,000.

Further, the CBN in the new Guide to Bank Charges slashed charges for cash withdrawal via Other bank’s ATM to “maximum of N35 after the third withdrawal within the same month” from “N65 after the third withdrawal within the same month”.

The CBN also removed Card Maintenance Fee (CAMF) on all cards linked to current accounts, a maximum of one Naira per mille for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other banks on current accounts only,

Commenting on the new charges, Director, Corporate Communications, CBN, Isaac Okorafor, explained that the current NIP charges apply to use of Unstructured Supplementary Service Data (USSD), purchase with cash-back will attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal. Also, for cards linked to savings account, a maintenance fee has been reduced to a maximum of N50 per quarter from N50 per month amounting to only N200 per annum instead of N600.

Furthermore, he said that there will be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer (like confirmation letter, letter of non-indebtedness and reference letter) will now attract a fee of N500 per request.

On Current Account Maintenance Fee (CAMF), the Guide expressly stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. It emphasized that CAMF is not applicable to Savings Accounts.

According to the Director, the CBN carried out the review of the Guide, which also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions, in order to align with market developments.

To guard against excess, unapproved or arbitrary charges by banks and other financial institutions, the Guide stipulates a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time for financial institutions that breach any provision of the guide.

The Guide also emphasized that failure by any bank to comply with CBN’s directive in respect of any infraction shall attract a further penalty of N2,000,000 daily until the directive is complied with or as may be determined by the CBN from time to time.

Consequently, the CBN directed banks to log every complaint received from their customers into the Consumer Complaints Management System (CCMS) in addition to generating a unique reference code for each complaint lodged, which must be given to the customer. Failure to log and provide the code to the customer, it added, amounts to a breach and is sanctionable with a penalty of N1,000,000 per breach.

The charges prescribed in the Guide were arrived at after extensive consultations with stakeholders and is expected to enhance flexibility, transparency and competition in the Nigerian banking industry.

(Vanguard)

Business

NNPCL Withheld N8.48trn Oil Subsidy Since January 2022 – RMAFC

Published

1 day ago

June 8, 2023

Editor

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has accused the Nigeria National Petroleum Company Limited (NNPCL) of withholding N8.480trillion.

The commission said the NNPCL withheld the sum meant for the Federation Account, as petrol subsidy, from January 2022 till date.

A statement on Thursday by RMAFC Chairman, Mohammed Shehu suggested that the subsidy regime was shrouded in secrecy.

Shehu said the scrapping of oil subsidies by President Bola Tinubu, a decision he announced during his inauguration on May 29, was a good move.

“Since January 1, 2022, to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.

“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608,” the statement reads.

The figure reported by the Office of the Accountant General of the Federation (OAGF) “is yet to be reconciled by the RMAFC, OAGF, and NNPCL”, Shehu noted.

The RMAFC chief said in a situation where subsidy transactions are not transparent, “it would be unwise to sustain the phantom payments of subsidy.”

He expressed optimism that the subsidy removal would eliminate uncertainty surrounding the subsidy regime and avail funds for the execution of critical national projects.

Shehu further charged the President to go after economic saboteurs “who have contributed to the nation’s economic woes.”

Business

Nigeria Earned N109.6trn Non-oil Tax In 12 Years – NBS

Published

1 day ago

June 8, 2023

Editor

The National Bureau of Statistics (NBS) has revealed Nigeria earned N109.6 trillion from non-oil taxes in 12 years.

The federal agency gave the breakdown in its latest report titled “Tax-To-GDP Ratio.”

The document noted that between 2010 and 2021, Africa’s most populous country earned N25.1 trillion from oil tax.

According to NBS, Nigeria collected N6.8 trillion in 2010, N9.4 trillion in 2011, and N8.4 trillion in 2012 as non-oil taxes.

Non-oil taxes earned the nation N9.2 trillion in 2014, N7.8 trillion in 2015, and N7.1 trillion in 2016.

Furthermore, Nigeria generated N8.7 trillion in 2017, N10.6 trillion in 2018, and N12.5 trillion in 2019 from non-oil taxes.

However, the country collected N2.4 trillion from oil taxes in 2014, N1.4 trillion in 2015, and N1.2 trillion in 2016.

NBS added that the total tax revenue from non-oil taxes in the period under review was N142.4trillion

Business

UK Clamps Down On Cryptocurrency Sector

Published

2 days ago

June 8, 2023

Editor

Britain’s financial regulator on Thursday tightened rules over the promotion and selling of cryptocurrency as it seeks to protect consumers.

The Financial Conduct Authority unveiled a package of measures for the industry, which has long faced criticism over the lack of oversight — and promises of high returns in a volatile marketplace.

Under the new rules, companies promoting crypto products or services in Britain must from October give a “clear warning” that customers could lose money in “high-risk” investments.

Marketing firms must also introduce a cooling-off period for first-time crypto investors.

FG put MDAs’ payments on hold
And the watchdog will also ban “refer a friend” bonuses that are designed to incentivise crypto investing.

“Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, head of consumers and competition at the FCA.

The announcement comes after Britain introduced legislation earlier this year to bring crypto promotions under the scope of the FCA.

UK lawmakers are also demanding that crypto investments in Britain be regulated, in much the same way as the country’s gambling industry.

Reacting to the FCA announcement, the director of operations at industry group CryptoUK, Su Carpenter, said the new rules could prevent fresh entrants.

“There is a risk that this solution will both unfairly concentrate market power for those firms which are already authorised and potentially encourage unauthorised firms to operate from outside of the UK,” Carpenter said.

That could, in turn, create “a competitive disadvantage for UK-based organisations and also potentially undermining consumer safeguards”, she added in a statement.

The FCA clampdown follows moves toward tighter regulation in the United States.

The Securities and Exchange Commission on Tuesday sued crypto platform Coinbase, charging that the largest US digital currency trading platform made billions of dollars by “unlawfully facilitating the buying and selling of crypto asset securities”.

The SEC has this week also unveiled charges against Coinbase peer Binance and its founder Changpeng Zhao for numerous alleged securities law violations.

The news follows the spectacular failure of crypto exchange giant FTX in November, stoking concern over a market dubbed by some critics as the “Wild West”.

AFP