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.