www.vanguardngr.com/2016/02/will-nigerians-boycott-banks-on-tuesday/


Will Nigerians boycott banks on Tuesday?
ON February 28, 2016 4:27 AM / IN

STORIES By Udeme Clement,

If Nigerians heed the call by the Consumer Advocacy
Foundation of Nigeria (CAFON) and Coalition of Nigerian Consumer Protection Associations, banks
across the country, on Tuesday, March 1, will be empty.

The group wants Nigerians to boycott the banks on that day in protest against alleged arbitrary charges imposed on customers by the financial institutions.

This is coming weeks after the Central Bank of Nigeria
(CBN) imposed N50 on customers as compulsory stamp duty on deposits of N1,000 and above. The charge, however, is collected on behalf of NIPOST and the Federal Government and it goes to the Federation Account. Only last week, the CBN said it got banks across the country to return excess charges, estimated at N6.2billion, to customers.

Our investigations revealed that, aside normal bank charges associated with daily transactions, depositors are exposed to many hidden charges as well as what
financial experts described as arbitrary charges.

Charges enormous – Mikail, Shareholders Association boss

In a chat, the National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, explained that the banks are facing a lot of challenges in the operating environment, saying, however, that this does not justify some of the charges. He said,

“The reality is that, banks have to collect certain charges to sustain their operations, in order to remain in business. They have to pay their staff, give dividends to shareholders and carry out general maintenance of their facilities. The banks spend a lot of money to buy diesel daily to generate power due to erratic electricity supply in the country. So, at the end of month, they transfer some of the costs to customers as bank charges. We are not saying that banks should not collect charges from customers, because they need some of these charges to stay afloat in business.

But the issue is that, the charges are so enormous and, if not checked, may have adverse effect on the cashless monetary policy already in place. For instance, a large part of Nigeria is still un-banked, and if these numerous charges are not curtailed, many people who are already using the services of banks may stop patronising them”.

Responding to what the Bankers Committee, which often meet to examine issues in the financial sector, is doing currently to tackle the challenges in the sector, he said, “It is clear that the Bankers Committee, at present, does not know exactly what to do, in order to turn around the financial sector of the economy, especially in the issue of forex crisis rocking the sector. So, deliberate and consistent government policies are needed to restructure the sector for greater efficiency, especially in the aspect of exchange rate that is affecting virtually everything in the economy now.”

CBN, Bankers’ Committee and bank charges:

It could be recalled that the cashless policy was first
introduced by CBN on January 1, 2012 in Lagos State,
where the higher proportion of cash circulates daily
as a pilot study to test-run the process. Thus, the CBN
and the Bankers Committee, in November 2012,
agreed to abolish all charges associated with the use
of ATMs, in order to increase patronage of ATMs,
thereby deepening financial inclusion strategy of the
apex bank. So, in December, 2012, they abolished the
payment of N100 ATM withdrawal charge by depositors. They transferred the payment of the N100 fee to the issuing banks, stressing that the fee be split between the acquiring bank, issuing bank and switch companies. But, on August 13, 2014, the same
Committee and the CBN re-introduced ATM charge of
N65 instead of N100, to be paid by individual customers.

The circular, signed by the Director of Banking and
Payment Systems Department of CBN then, Mr. Dipo
Fatokun, stated, “The CBN agreed to re-introduce ATM charge because the cost of transaction was becoming too burden some for the banks to bear. The circular from September 1, 2014 shall be effective date for the implementation of the new charge. Banks are expected to conduct adequate sensitisation to the customers on introduction of the new fee. As a result of the un-intended consequences of the decision, which has resulted in substantial cost burden incurred by banks in defraying the cost of the service, the payment structure for card carrying bank customers is hereby reviewed in line with the present realities”.

Customers’ angle

When Sunday Vanguard visited some commercial
banks in Lagos, customers were seen carrying out
their normal transactions. It was also observed that,
some banks had more customers in the banking halls
and at the ATM points, while other places were very
scanty. Some of the depositors who spoke during the
visit blamed the CBN for re-introducing ATM charged
that was abolished by the former governor of CBN,
Sanusi Lamido Sanusi, while other said that banks are
making a lot of money from customers, yet they keep
on retrenching, even as many of their workers are on
contract.

A customer at Oluwo, Ikeja branch of First Bank, who
gave her name as Mrs. Gloria Moses, said, “The apex
bank that regulates activities of commercial banks is
acting as if it is panicking, especially in the area of
foreign exchange. If you look at the forex policies of
the CBN critically, you can easily realise that the
current CBN is already panicking. To me, the re-
introduction of ATM charge after it was removed by
the same CBN was unnecessary. For that reason, I
don’t use ATM of other banks for withdrawal since
that charge was brought back. I simply withdraw fro my own bank to avoid paying extra charge. It seems
the CBN is even losing focus on what the banking
public actually want, which is a reduction in interest
rate for industries to thrive and create jobs for the
masses. I think the re-introduction of ATM charge
constitutes policy inconsistency”.

Perspective of advocacy group/Objective

Some of the practices mentioned by CAFON, which
necessitated the action against banks excessive
charges, unexplainable fees and unfair contracts
designed to protect the financial institutions to the
detriment of the banking public. Others are
indiscriminate debiting of customers’ accounts for
charges that are arbitrary and unilateral changes in
interest rates by banks, and this without prior notice
to the consumers.

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Count me among.

Impossible

Infact i wouldnt even go till thursday.

Bt all dis na wash, d people wit d real cash dont go to bank anymore banks come to dem

So where will Chijoke, Nna ememka and sons, Ifex and co. Go Deposit the money they made on monday abi you think say Igbo men dey sall sweet and chin chin for Alaba market!?
This their protest won't even see the light of the day!!!!!

I'm with this boycott



As long as it serves the purpose

Will mobile bank be excluded?

Most Biz men depend on banks for their Biz to grow! so don't go there!

I have been boycotting bank since January, why?

I don't have money in my account

Nigerian CBN is confused, Nigerian banks are in deep waters and may drown if nothing is done about it. The masses are suffering from these wicked policies introduced by the CBN. No more interest is paid on your savings account but instead they deduct money regularly from your savings. Abnormal banking is the order of the day.
We should start thinking of saving our hard-earned cash in secure bunkers or pits till the CBN receives deliverance from confusion.

Affirmative

Good idea but how many people are aware of this? I am hearing of this for the first time. Sadly, this may not be achievable due to the nature of some people's businesses. They need to make daily deposits in banks to avoid being robbed of their earnings.

Back to my kolo

dominique:
Good idea but how many people are aware of this? I am hearing of this for the first time. Sadly, this may not be achievable due to the nature of some people's businesses. They need to make daily deposits in banks to avoid being robbed of their earnings.

Abi now. How many people are aware? The second point makes sense eh... Keep your cash at home or in your shop at your own peril.

I have to be at the bank that day....not boycotting.

Nigeria is in trouble.

Lookinh

Tallesty1:
Impossible

Nothing is impossible

Good, if only they start to dey share am for bbm and whatsapp





I wish all jambite if stay house till jamb finish, I just dey pity them, for space of 500k+ jamb dey sell 1.5+

More charges to come

So Whr Will Ifeco Management Nd Sons Deposit Saturdai's Sale Nd The One On Mondai Too . . Bia, Take Tym Dia oo

What do i have to save?

Islamic Banking system is the only way out.

Organizers didn't plan this well. Tuesday, beginning of month when most employers dey expect salary? If I hear

Dnt tink so. Nigerians dnt knw hw 2 do such, we no be all dis developed countries. And I don't tink some ppl r aware of such. Let's find another kind of protest

Can we be united on this? I don't think so.

banks gain mostly on forex

As my bank balance be like jamb score, i don dy boycott them since january

nigerians are not Like Egptians or the arabs that mean what dey say...

In 9ja d person dat will organize d boycott will go behind and use d banks...

Just watch and see

Hmmmm