Average Nigerians may resort to keeping their money at home as Deposit Money Banks in Nigeria begin to increase the minimum account balance for individual customers.


An investigation by our correspondent revealed that, though only one of the banks had been bold enough to make the plan public, some others were still in the process of finalising their plans.


Some of the banks, according to findings, are increasing the amount that must be left in individuals’ accounts at any point in time to reduce the crowd in their banking halls, in line with the Central Bank of Nigeria’s move towards a cashless economy. Others, it was gathered, were only doing so to retain enough funds for other business.


Already, the United Bank for Africa Plc has informed its customers that, with effect from July 1, 2011, the required minimum balance for savings and current account holders will be N25,000.


Our correspondent gathered from an official of the bank that the idea was to move account holders from the regular accounts to card accounts.


The official, who craved anonymity because he was not permitted to speak officially, added, “The N25,000 is the amount you need to leave in the bank at any point in time. Ninety per cent of the crowd you see in the banking hall do transactions below N25,000. For you to maintain this set of people, you need to spend and deploy a lot of resources.


“These transactions can be done outside the banking halls through e-banking. So we just want to move them to the platform of e-banking.”


Though officials of the corporate affairs department of UBA said they had not received approval to react to the issue as at press time, the notice in the bank’s banking halls read, “Dear esteemed customer, please be informed that, with immediate effect, the new minimum opening balance for savings and current account is N25,000.


“Meanwhile, all existing customers of the bank are, therefore, advised to increase their savings and current account balances to N25,000 minimum, on or before July 1, 2011. Thank you for banking with UBA.”


It was also gathered that some banks that had not increased their minimum account balance had also set high cash requirements for the opening of new accounts.


For instance, when our correspondent visited branches of Zenith Bank Plc, the officials of the bank said an individual could not open savings or current accounts with less than N25,000.


A top official of one of the “strong banks” confirmed to our correspondent that the bank was planning to increase the minimum account balance for customers, from the current N1,000 to between N10,000 and N20,000.


He said, “The N1,000 minimum balance has been there for a while. We have a lot of dormant accounts in the bank now and this can only be curtailed by increasing the minimum balance a customer can leave in his or her account.


“It’s not something that will require an approval from the regulator. If you think this is the way your business can favour you, then the regulator cannot blame you for that. It’s not like you are charging the customer extra money. It is still their money.”


Experts have, however, said that, with the new N18,000 minimum wage, the banks are only saying that banking is not for the poor and that “Nigerians should be keeping their money at home.”


Some customers, who spoke to our correspondent on Wednesday, said that the CBN should monitor the banks’ operations as regards the minimum account balance demanded from customers.


“I think it’s a wrong move at this time when people are still trying to build their confidence in the banking industry. Where do you want people who earn as low as N20,000 to keep their money? The banks are indirectly saying that some people should not come to the banks to save again,” a customer of one of the banks, who identified himself as Segun Adeniji, said.


A financial analyst with Civic Investment Limited, Mr. Thomas Adenuga, however, said that the move had its merits and demerits.


“Any bank that increases its minimum balance unjustly will definitely lose its customers to other banks. However, that is not to say that there may be no justification for the increase. Currently, there are a lot of unbanked people, who still don’t have bank accounts. What the banks should be doing is to promote savings culture and not increasing minimum balance,” he argued.


An independent, professional and non-profit organisation conceived by the United Kingdom’s Department for International Development, Enhancing Financial Innovation and Access, had said that 79 per cent of Nigeria’s adult population were unbanked.

http://www.punchng.com/Articl.aspx?theartic=Art201106303534193

ARE THESE GUYS CRAZY OR WHAT!!! HAVE 25K SITTING IN MY ACCOUNT DOING NOTHING!! ONLY FOR THEM TO USE MY MONEY AND BUY PRIVATE JETS AND MANSION AT EUROPE, THEY MUST BE KIDDING!!

When someone first mentioned this at the office last week, we brushed it aside and insisted he must have misunderstood the information.
Let me put this into perspective, people with minimum cash balance of 1k who earn less than 24k will automatically receive no salary in the month this takes effect ? Wonderful !

They will not implement it; that was how intercontinental bank tried to do the 10000 and it did not work

Are these people for real?If your problem is the long queues in banking halls,put a restriction on the amount of funds that can be cashed inside the banking hall and promote the use of ATM cards.
This is absolutely ridiculous and will not see the light of day.Phuckin' b@$+ards!!!

UBA, mtcheeeeeewwwwww. This is just the beginning, soon they'll be charging customers to access their banking halls. Useless bank. Its GTB all the way, I just opened my account there and realized they pay monthly interest on deposit. So loving it.

In my perception, if you have less than 25k remaining balance. the bank dont need you in it premises for transaction

dem don dey madt . . .

awon ole oshi!

If they decide to go through with it. Then it will be the beginning of the end of UBA. Useless bank.

afam4eva:

If they decide to go through with it. Then it will be the beginning of the end of UBA. Useless bank.

Guy their balance sheets states otherwise o

blink182:

Guy their balance sheets states otherwise o

Have they gone through with it already?

lmao

I heard this since the beginning of this month from a UBA staff and when I told her that it could lead to a mass withdrawal, she shrugged indifferently and said it won't matter to the bank and that it would actually be a big relief. I asked another staff of Fidelity, who denied that the bank was going to increase its minimum balance for regular savings and current accounts.

^^^^^^^^^^
I meant last month

afam4eva:

Have they gone through with it already?

Honestly sir that is none of my business, why are you people shouting, the bank is out to service upper middle class and the rich as for the rest of you, you can buzz off, your presence is no longer needed.

IBTC and emmmmmm, the bank owned by mike adenuga. . . ehen Equitorial Trust Bank. Even with your hundred thousand no one wil look at your face there. So let UBA be.

You are all welcomed to GTB and OCEANIC

How can one leave 25k idle in a bank account when the minimum wage in Nigeria is 18k?

jamace:

How can one leave 25k idle in a bank account when the minimum wage in Nigeria is 18k?

Don't mind them, at least under our mattress and clay pots still dey, we just do it as our grand parents did back in days, maybe we should also buy guns or acid to protect them from bad guys!

blink182:

Honestly sir that is none of my business, why are you people shouting, the bank is out to service upper middle class and the rich as for the rest of you, you can buzz off, your presence is no longer needed.

IBTC and emmmmmm, the bank owned by mike adenuga. . . ehen Equitorial Trust Bank. Even with your hundred thousand no one wil look at your face there. So let UBA be.

You are all welcomed to GTB and OCEANIC

My friend, stop that nonsense talk,

If you are privileged to have $1m in your UBA ACCT. that is your problem.

Majority of Nigerians  don't get 10k to to feed par month yet UBA wants them to forget 25k in their account.

And I though current accounts do not need minimum balance, why is UBA extending this to current acct?

MODERATOR CAN WE PLEASE HAVE THESE TREAD ON FRONT PAGE?

I know most people here use UBA accounts.

Having 200USD as minimum balance is alien to all known standard banking practice world over.

This is what happens when we have an extremist at the hemls of financial regulation and a weakling as a president.

I weep for this nation.

Wait oh people. Does it mean as I would normally forfeit 1k when I want to close an account is the same way I will now forfeit 25k for UBA in my account.
E be like say UBA wan witness mass litigation from Naija pips.
First these guys did not even do any enlightenment campaign for at least one month and they want to start duping people of their 25k by 1st of July.

Make them try first. For those saying that their balance sheet is strong, don't forget that it only takes mass withdrawals from your depositors for your bank to go under, no matter how strong a bank thinks it is.

emmatok:

My friend, stop that nonsense talk,

If you are privileged to have $1m in your UBA ACCT. that is your problem.

Majority of Nigerians  don't get 10k to to feed par month yet UBA wants them to forget 25k in their account.

And I though current accounts do not need minimum balance, why is UBA extending this to current acct?

My guy I still stick to my view, there are over 20 alternatives to UBA so move your lean cash out before they seize it legally. By the way I don't have that kind of money and I don't bank with UBA, the bank has always irritated me.

79 percent of the populace are unbanked and they still want to increase it. One day they mandate all nigerians to have account with 'haram' bank

Nairalanders are too daft and always looking to make hate statements. Grow up pls

@blink182, it is true that you don't bank with them. But has it ever occurred to you that if UBA can get away with such policy other Nigerian banks will soon start implementing it.

@topic, the simple question I asked myself yesterday was this; "if UBA is about to go bankrupt, and am required to make a cash donation of 25k to save it, will I do it?" the simple answer is NO.
Then why should I leave my 25k balance with UBA, because I want to still be their customer?

This will no doubt affect if not all, the middle class who earn less than that amount to be left in their a/c. I also feel for same class of people that their companys or establishment that makes it compulsory opening salary a/c via such banks. It will be hard.


Is this what Sanusi is planning for the common man.

Abali1:

@blink182, it is true that you don't bank with them. But has it ever occurred to you that if UBA can get away with such policy other Nigerian banks will soon start implementing it.

@topic, the simple question I asked myself yesterday was this; "if UBA is about to go bankrupt, and am required to make a cash donation of 25k to save it, will I do it?" the simple answer is NO.
Then why should I leave my 25k balance with UBA, because I want to still be their customer?

Other banks wont dare, it will cause an uproar. People will definitely be forced to find alternative means of keeping their money, UBA is only migrating from everybody's bank to servicing high net worth individuals. I am tired of people crying of this and unsubscribing to this thread. If you don't like what is happening there, take your cash elsewhere instead of trying to cause a stare.

i was @ UBA bank today and it has been implemented, i tried to open a new account and they told me to bring 25k before any oda stuff wld go on, Trust me,UBA bin d largest bank in Africa would crumble if they dont stop this bullshit, i was at the bank with 3 oda people who also wanted to open new account and we all left without lookin back, now imagine how many customers they would be loosing daily from every bank branch, imagin they have 200branches and this branches looses 3 customers daily, 200*3=600

A thread on this already exists.

Please posts your comments on this thread below:

https://www.nairaland.com/nigeria/topic-704887.0.html