CBN Introduces New Charges for Current Account Holders in Nigeria

The Central Bank of Nigeria, CBN, has announced that bank customers are now mandated to pay a maintenance fee on current account transactions.

The new fee is a negotiable current account maintenance fee not exceeding N1 per mille (N1 per N1,000,000) may be charged in respect of all customer-induced debit transactions, a circular from CBN's Financial Policy and Regulation Department Director Kelvin Amugo, said.

In the circular titled: “Introduction of Negotiable Current Account Maintenance Fee not Exceeding N1/mille”, Amugo said the negotiable current account maintenance fee was in furtherance of the mandate to promote and safeguard a sound financial system.

He reminded lenders that 2016 zero COT regime as jointly agreed during the 311th Bankers’ Committee meeting of February 12, 2013 had come into effect and must be complied with.

“The CBN noted that while the gradual phase out was being observed, some banks continued to charge account maintenance fees in addition to the reduced COT rate, which in effect amounted to double coincidence of charges,” he said.

The fee came weeks after the regulator struck out Commission on Transaction (COT) fee, which contributed significantly to lenders’ profitability.

The Central Bank of Nigeria on Thursday explained some misconceptions among members of the public on the implementation of stamp duty on bank transactions. The CBN had, in a circular on Tuesday, urged Deposit Money Banks and other financial institutions to support the Federal Government in boosting its revenue through the collection and remittance of statutory charges on receipts to Nigerian Postal Service under the Stamp Duties Act. Speaking with journalists in Abuja, the Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, said the guidelines simply advised banks and other financial institutions operating in the country to commence the collection of N50 on eligible transactions only. According to him, such eligible transactions include all receipts given by a bank or financial institution in acknowledgment of services rendered in respect of teller deposits and electronic transfers for the value of N1,000 and above. Mu’azu hinted that the implementation of the stamp duty at this point in time emanated from a Federal High Court order that the CBN should direct the DMBs under its supervision to commence the collection of the duty on behalf of the Federal Government, in compliance with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria Financial Regulation of 2009.

Read more at: http://www.abelabel.com/2016/01/cbn-clarifies-n50-stamp-duty-on-bank-transactions/