CBN urges Nigerians to take action against discretionary commercial bank fees


CENTRAL Bank of Nigeria (CBN) Governor Godwin Emefiele urged Nigerians to take necessary action when commercial banks impose discretionary fees on their bank deposits.

Emefiele, who spoke at the Monetary Policy Committee (MPC) meeting on Tuesday, advised Nigerians to consult the “Guide to Bank Charges,” a document produced by the umbrella bank to guide bank customers on discretionary fees.

ICIR reports that the “Guide to Fees Charged by Banks, Other Financial and Non-Banking Institutions” (the Guide) provides a basis for the application of fees on various products and services offered by financial institutions in Nigeria to their customers. This document applies to all financial institutions licensed and / or regulated by the Central Bank of Nigeria.

The document obtained from the apex bank website indicated that the fees prescribed in the Guide were established after extensive consultations with stakeholders.

The Guide’s aim is to improve flexibility, transparency and competition in Nigeria’s banking sector, according to the document.

The governor of the bank apex, who also spoke about some of the bank’s legacy projects at the meeting, said they would be completed before the administration’s current term expires.

“At the start of Infraco, transaction advisers and asset managers were appointed. We conclude with the appointment of the CEO of Infraco in a moment. Shareholders are also reviewing the three major projects entrusted to asset managers. Before the middle of next year, we would take off.

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Meanwhile, the CBN’s Monetary Policy Committee (MPC) kept the benchmark interest rate at 11.5%.

The MPC unanimously voted to keep the monetary policy rate at 11.5% at its meeting on Tuesday.

The MPC also maintained the same sentiment for the asymmetric corridor which remained at + 100 / -700 basis points, and the cash reserve ratio (CRR) remained at 27.5%.

Members of the monetary authority also voted to keep the liquidity ratio at 30.5%, with the governor of the umbrella bank saying the decision to maintain the perimeter was taken to support the resumption of economic growth.

The committee noted that with sustained intervention by the CBN, economic activity would normalize in the short to medium term, “leading to improved output growth and lower inflationary pressures.”

The results of the MPC meeting showed that insecurity remained a major concern for members, as they highlighted its impact on investor confidence, the influx of foreign investment and the economy in general.

Emefiele, who spoke on behalf of the MPC committee, said insecurity “remains a major drawback” and urged security agencies to redouble their efforts to build confidence in “the flow of people, goods and services “.

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The MPC has expressed optimism that food inflation – which was 18.34% in October 2021, down from 17.38% recorded in October 2020 – would decrease if insecurity in food production areas[inthenorthwheregangsandherdersattackmotoristsandfarmers[inthenorthwherebanditsandherdsmenareattackingmotoristsandfarmersistackled[danslenordoùlesbanditsetlesbergersattaquentlesautomobilistesetlesagriculteursestcombattue[inthenorthwherebanditsandherdsmenareattackingmotoristsandfarmersistackled

Meanwhile, some analysts have praised the umbrella banks’ encouragement for Nigerians to take action against discretionary deductions.

Ene Obi, Deputy Director of Action Aid and social commentator said ICIR that most Nigerian consumers do not like to speak out when they are not satisfied with the service they receive from their banks.

“This is a welcome development and now the apex bank has thrown the ball in the court of Nigerians, I urge them to take the necessary action as contained in the Guide.”


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