The Nigerian Senate In Wednesday, passed a resolution calling on the Central Bank of Nigeria (CBN) to suspend the excessive ATM card maintenance charges being deducted from customers.
The resolution came as part of a motion on the illicit and excessive bank charges on customers accounts, sponsored by Senator Olugbenga Ashafa (Lagos East, APC).
The Senate also called on commercial banks operating in the country to configure their machines to dispense up to N40,000 per withdrawal pending the outcome of the investigation by the Senate committees tasked with investigating the excessive and illicit bank charges.
Speaking on the Motion, the President of the Senate, Dr. Abubakar Bukola Saraki said: “This is a motion that affects the lives of every Nigerian — irrespective of what part of the country you come from or whatever political affiliation you might have. This is why we are here: to always defend and protect the interests of the Nigerian people.”
The Senate President stated that the Senate must work to ensure that the resolutions on the excessive bank charges goes beyond the debate stage, so that whatever action the Upper Legislative Chamber takes, would come into effect.
“This Senate has done this many times before; when there was a hike in the mobile telecommunication data charges, we intervened and put an end to that. When there were discrepancies and increases in electricity prices, we also took action. We have done this on a number of similar cases. Therefore, on this, I want us to take effective resolutions,” Saraki said.
Other Senators who contributed to the debate, called on banks to review their charges.
“The common man is also a victim,” said Senator Emmanuel Bwacha, “Banks declare profits and you wonder where these profits are coming from — it’s from the sweat of the common man. Let us come up with a law that puts banks on their toes.”
“It won’t be out of place to institute a committee that will call on the CBN to tell us what these charges are about. The Senate by fiat should abolish charges if they can’t be verified,” said Senator Bala Ibn Na’Allah.
“The Senate must take a serious stand on this issue. Nigerians are really suffering. The banking system is not encouraging. I had an issue, took it to the bank and was refunded but how many Nigerians can do this? The issue needs to be addressed,” stated Senator Kabiru Gaya.
“For me, this is a major step that we are taking. This is because I introduced the first ATM machine that came into Nigeria over 25-years ago,” the Senate President, Dr. Saraki told his colleagues, “Now, after 25-years, we should have grown out of these excessive charges and moved on. So, I believe that this is something that we must address to create an environment that protects all Nigerians, because these kind of charges in this economy affects everyone.”
The Senate further directed its Committees on Banking, Insurance and other Financial Institutions and Finance to conduct an investigation into the propriety of ATM card maintenance charges in comparison with international best practices and report back to the Senate.
The Senate also directed the aforementioned committees to invite the Governor of the CBN to appear before it to explain why the official charges as approved by the CBN are skewed in favour of the banking institutions as against the ordinary customers of the banks.
Finally, the Senate called on the Consumer Protection Council to look into the various complaints of excess and unnecessary charges by Nigerian Banks.
Source: The Ripples
The Federal Government of Nigeria has announced the issuance of a second tranche of N100 billion Sukuk Bond to finance road infrastructure across the country.
The approval for the second tranche followed the success and oversubscription of the first tranche, the Chief Executive Officer (CEO) of Metropolitan Skills, Ummahani Amin, said at a two-day training on Sukuk structurisation and management in Abuja.
The training was organised by the Metropolitan Skills Ltd. in partnership with the Ministry of Finance, and Standing Committee for Economic and Commercial Cooperation of the organisation of the Islamic Cooperation (COMCEC).
Recall that the Federal Government had in September 2017 issued the first N100 billion Sukuk Bond as part of capital raising for the construction of about 25 roads in the nation.
Amino said funds realised from the second tranche of the bond would also be channelled into the construction of roads across the six geo-political zones of the country.
He assured that just like the first tranche, this year’s tranche of N100 billion would be successful.
“We are doing the second tranche now because the first one was successful and over subscribed. N100 billion was involved in the first and the second is on the way.
“So we are looking at the same infrastructure, construction of roads across Nigeria and the six geopolitical zones. This has never happened in the history of Nigeria for infrastructure,” Amin said.
Source: The Ripples
The Central Bank of Nigeria (CBN) said it will impose N10,000 ($28) fine per item for every failed NIP transaction caused by any financial institution operating in the country.
It said the implementation of the sanction, which would be effective from October 2, 2018, would be monitored using complaints from senders and/or beneficiaries.
The CBN said the sanction would be placed on any Instant (Inter-Bank) Electronic Funds Transfer (EFT) service provider that fail to reverse such payment within 24 hours.
Instant (Inter-Bank) service provider are any financial institution licensed by CBN to carry on the business of facilitating electronic funds transfer services in partnership with sending and receiving entities.
The CBN, in its Regulation on Instant (Inter-Bank) EFT Services in Nigeria released during the weekend, said the policy was in furtherance to its mandate for the development of electronic payments system in the country.
Also the financial regulator also said delayed application of inward NIP into beneficiary’s accounts beyond four (4) minutes would also attract another N10,000 ($28) fine per item.
The apex bank however advised any stakeholder to the instant EFT service willing to propose an amendment to the regulation to formally forward such proposal to the office of its Director, Baking and Payments System Department for consideration.
Instant (Inter-Bank) EFT also known has instant EFT or instant payment means a system between two distinct entities when delivery from the sending entity to the receiving entity takes place within one (1) minute.