Dear Banks

Dear Banks,

With this post I thought to let you know what most customers think and personally what I think also. You are well appreciated for your activities so far and we do not take them for granted. In fact, the only reason why we are putting this much efforts and attention towards you is because we understand how much you mean to us.

I have been a victim of a closed bank branch which was a stone throw from my house. Closing down that bank branch made me understand and appreciate better what your presence to our communities is to us. We also do understand and agree with the fact that as a bank, you are out to make profits and as such should do anything to achieve this aim as long as it is moral and legal.

Having known all of these, we also think you should see things from our end being your customers and adjust appropriately. As a bank you need to always remember the fact that there will be no you without us and to keep us, the need to treat us well is paramount. Have you ever wondered why we do not believe anything you say anymore? Have you asked yourselves why it has become increasingly difficult to convince into having or sustaining a banking relationship? Do you think the reason why you no longer get as much deposits/funds is just because of the slow economy? Have you ever wondered why you waste so much money training your staff (marketers especially) and the next month you are sacking them?

Photo Credit: Wikihow (edited version)


The answer to these numerous questions is simple. Satisfied customers and staff. When these two set of people in your bank are satisfied, you can be assured of a more successful and profitable output. It is unfortunate that in most banks, there staff members are as pissed and irritated with the bank as their customers. If this then be the case, who is meant to pacify who? It is absolutely impossible to see a happy customer in an organization with unhappy staff members; IT CANNOT WORK. You only give what you get.

Most banks have the most frustrated staff members as their customer facing staff. Meaning that these are the first point of contact of any customer. How on earth can this work? More so, I wonder why banks do not have a feedback unit. I understand that there are various departments in a bank and all these departments work towards ensuring that the bank’s vision is achieved. Dear banks, please do not forget that no matter how lovely your vision statement is, if it does not meet the needs of your customers, then it is rubbish.

The banking process is supposed to be a relationship between the bank and the customers and in every relationship, effective communication is key. When is it appropriate to say that a communication is effective? This is when the intended message is received, acted upon and feedback is sent. By this, parties involved in the communication can say to have effectively communicated. So please, I urge our banks in Nigeria to adopt the strategy of having a feedback unit so as to constantly know how and what the customers feel about their processes and policies.

By feedback unit I do not mean a box placed in the banking hall asking for people’s comment. Nobody has time for that, may be some years back we could believe that these boxes are usually checked and comments are attended to. But not any more, we have lost that confidence and trust. What we need is a proper unit well equipped with whatever it will require to go out there and get customers opinion and view of the bank. For many of you banks that are quick to manage costs, you can do this quarterly or at intervals if not on a daily basis. Also please note that this should not end at getting these feedbacks, ensure to act on them. It is called being responsible and customer centric.

Like I have always said, the hiring and firing system of most banks does nothing but makes a mockery of a bank. It is very funny to see that a bank that advertises for staff this month, is seen the next month to have fired these same staff in the name of retrenchment. Unfortunately, they do this and blame the economy. If you understand at every point in time the need for your existence and run with that vision, you will never have to go through the unnecessary stress of holding endless meetings at all times and mounting undue pressures to your staff.

One of the characteristics of a Nigeria banker is ‘I am in a meeting’. Most times, they are in the meeting truly and one can’t understand what these meetings lead to. My neighbour drives out of the house 5:30 A.M every morning to catch up with a 6 A.M meeting and I still don’t understand what those meetings have yielded. Is it not just common sense to do things differently if we expect a different result? Its high time banks in Nigeria relax a bit, look inward and correct their errors.

How is it possible that you have staff members in a position for six years and even more without promotion, increase in salary or any form of remuneration and yet you want them to come in high spirits to work? Even with the help of alcohol and Indian hemp, the spirit of such staff will always be low. Show me a happy bank staff and I will show a very satisfied customer.

Once more, I urge you banks to go back to your drawing board, make amends and watch us flock your halls. Wishing you a very profitable year.


The Guide To Bank Charges

This table below shows a guide to the different charges made by the banks on your transactions. in case you wonder if banks take these charges at their own will, the answer is no. Being regulated by the Central Bank of Nigeria,the banks are expected to follow these guides when taking their charge.

However, as indicated in the table also, there are certain charges that are left entirely to the bank's discretion being the reason why it is stated as negotiable. Subsequently, ibank will be informing you what the charges represent and the party that takes what. Having said this, kindly note that not all charges taken by the bank goes to the bank.




S/N
Charge Description
Old charge
New charge (Effective 1 May, 2017)


Section 1-Interest on Deposits



1
Savings Account 

Minimum of 30% of MPR p.a. 
Minimum of 30% of MPR p.a. This is currently 4.2%

(not applicable if a customer makes more than 4 withdrawals in a month) 


2
Deposits held as collateral 

Negotiable in line with term deposit rate
Negotiable subject to minimum of 30% of MPR p.a.
(minimum of 4.2%) 



Section 2 - Interest rates and lending fees



3
Local Currency Loans 

Negotiable (the rate should anchor MPR, reflecting the risk-based pricing model). Also, when there is a change in agreed rate, the customer must be notified within 5 business days in advance of the application of the new charge.. 

No change in existing loan rates.

 Also, the bank is mandated to notify the customer of a change in rate where applicable at least 10 business days in advance of the application of the new rate. 


4
Lending rate-Foreign currency loans
Negotiable (reference to LIBOR)
No Change in existing loan rates


5
Interest on authorized OD 

Negotiable (the rate should reflect the riskbased pricing model). Also, when there is a change in agreed rate, the customer must be notified within 5 business days in advance of the application of the new charge.. 

No change in existing loan rates.

Also, the bank is mandated to notify the customer of a change in rate where applicable at least 10 business days in advance of the application of the new rate. 


6
Unauthorized OD/Credit 

Not permissible. The Bank should sanction the officer and forward his name to the Director, FPRD
Not permissible except as a result of facility repayment (where it occurs, Penal Rate as provided in Section 2.1.9 shall apply


7
Penal Rate

Penal rate is in respect of past due loans & advances, including excess over authorized OD/credit limit (which may arise from unauthorized OD or Credit)
Maximum of 1% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential
Guidelines on the limitation of accruals)
Naira loans and advances: Maximum of 1% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt
(without prejudice to the provisions of the
Prudential Guidelines on the limitation of accruals)

Foreign currency loans and advances: Maximum of 0.25% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals).

8
Drawing against Uncleared
Effects 

Negotiable
No change in existing loan rates.


9
Equipment Leasing 

Negotiable
No change in existing loan rates.

Also, the bank is mandated to notify the customer of a change in rate where applicable at least 10 business days in advance of the application of the new rate. 

10
Credit reference report

Cost recovery 

Cost recovery

11
Facility restructuring fee
Negotiable, subject to a maximum of 0.5% of the outstanding amount being restructured (one off charge). 
0.5% of the outstanding amount being restructured (one off charge). 


12
Management fee
Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge 

1% of the principal amount disbursed (one-off charge)


13


Facility Enhancement Fee 
This fee applies when an additional amount is granted to a customer. Where this fee applies, management fee shall not apply. 
Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge 

1% of the additional amount disbursed (one-off charge). 


14
Penal rate
1% flat on unpaid instalment per month in addition to charging current rate of interest on outstanding deb
1% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential
Guidelines on the limitation of accruals) 


15
Advisory/Consultancy fee 

Negotiable
Negotiable (only applies where there is a written advisory/consultancy agreement between the bank and the customer) 


16
Charges      for Consortium
lending


Management Fee 



Commitment/Non-Drawing Fee 



Appraisal/renewal  fee



Participation fee to be shared by banks





Negotiable



Negotiable subject to a maximum of 1% of the undisbursed amount (one-off charge) 



Negotiable, subject to a maximum of 0.25% of the principal


Negotiable




Negotiable subject to a maximum of 1% of principal amount (one–off charge)


Negotiable subject to a maximum of 0.5% of the undisbursed amount (one-off charge) 



Not provided




Not provided



Section 3-Current account Maintenance fee



17

Current Account Maintenance Fee (CAMF): Applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. Note that CAMF is not applicable to Savings
Accounts  


No Change




Section 4-Commission on Bonds, Guarantees and Indemnities



18
Performance bond (chargeable from date of contingent liability 

Negotiable subject to a maximum of 2% of the Bond value per half year 

Negotiable subject to a maximum of 1% of the Bond value (one-off charge) 


19
Advance Payment Guarantee (APG) (chargeable from date of contingent liability) 

Negotiable subject to a maximum of 1% of the APG value (one-off charge 

Negotiable subject to a maximum of 1% of the APG value (one-off charge 


20
Bank Guarantees
Negotiable subject to a maximum of 1%
(one-off charge) 

Negotiable subject to a maximum of 1% (one-off charge)


21
Other Bonds, Guarantees and
Indemnities 

Negotiable subject to a maximum of
2%,minimum of N5000 (one-off charge) 

Negotiable subject to a maximum of 1% (one-off charge)


 Section 5-Foreign Exchange Commission


22
Purchases from CBN   
1% of the value involved-flat(or as may be reviewed from time to time by the CBN)
As may be advised by the CBN. 

23
Inter-bank purchases
Negotiable subject to a maximum spread of 50k per dollar
As may be advised by the CBN

24

Cheques
Minimum of N1000 subject to a maximum of 1%
Not provided
25
Sight bills
Minimum of N1000 subject to a maximum of 1%
Not provided
26
Usance bills
Minimum of N1000 subject to a maximum of 1%
 Not provided
27
Foreign Currency purchases
from customers 

At the bank’s spot rate
Interbank foreign exchange bid rate 

28
Outward Telegraphic/SWIFT
and other transfers 

SWIFT cost recovery only
Swift cost recovery, 0.5% commission on transfer plus associated offshore bank charges (where applicable) 

29
Foreign    currency sales      to
customers 

Bank’s spot rate 

As may be advised by the CBN 

30
Commission on withdrawals from Domiciliary Accounts (whether savings or current
account) 

Current account-Negotiable, subject to a maximum of 0.5% of transaction value

Savings account-No charge
0.05% of transaction value or $10, whichever is lower 

31
Foreign draft purchase 

1% of the value of the cheque + the standard charge for clearing cheques
(offshore charges + courier)
0.1% of the value of the cheque + Offshore charges 

32
Collection Charge on Cheques 

1% of cheque value or  US $10 whichever is higher 

1% of cheque value or Naira equivalent of US $10 whichever is lower 

33
Commission    on telegraphic/swift transfer and drafts
0.5% or $10 or its equivalent, whichever is higher
Not provided




Section 6-Bills for Collection Inward


34
Commission on clean bill  
Negotiable subject to a maximum of 2%

Not provided
35
Commission on documentary bill
Negotiable subject to a maximum of 2%
Negotiable subject to a maximum of 0.5% of the bill value

36
Holding charges after nonpayment, chargeable one month
after due date 

N25,000  bill and below-N2,500 per month Above N25,000-N5000 per month
N5,000 per month 

37
Extension charges for sight bills
altered to tenured (usance) bills 

N3000 per bill
N3000  plus cost of swift
38
Protest charges plus Notary
Public Fees 

Negotiable subject to  a maximum of N5000
Cost of postage, (chargeable only where the agreement specifies that the customer will pay) 

39
Bills for Collection-Negotiation
0.5% of the value of the bills
Negotiable (to be advised)
40
Commission       on                        handling
charges in respect of collection

Presenting bank-25% Collecting bank-75%
Not provided
41
Unpaid bills
In addition to the holding charge in holding charge, where a Nigerian bank is acting for a Nigerian presenting bank, 1% commission is claimed and proceeds split with collecting bank in accordance with thefee advised in the preceding section
Not provided

Bills for collection (Outward)

42
 Documentary bills
Negotiable subject to a maximum of 2%
Negotiable subject to a maximum of 0.5% 

43
Clean bills
Negotiable subject to a maximum of 1%
Not provided
44
Export Documents Delivery 

N5 per mile of the invoice value subject to a maximum of N5000
Negotiable subject to a maximum of N5,000 plus cost of courier 

Section 8-Inward and Outward letters of credit


Inward  letters of credit (export)


45
Advising Commission

Where a Nigerian bank simply verifies authenticity of the Credit and delivers same. 

Where a Nigerian bank has to rewrite the credit

N2000





N0.5 per mile, subject to a minimum of $25 or its equivalent
N5,000 flat  





0.05% of the value, subject to a minimum of Naira equivalent of US $25 

46
Commission on Confirmation of
LC 

Minimum of N5,000 subject to a maximum of 1% of the face value
Minimum of N5,000 subject to a maximum of 0.5% of the face value. 

47
Transferrable credits, transferable and divisible credits
(part –shipment

Where all or part of a credit is transferred, the charges (paid by the original
beneficiary) are of the amount transferred--0.5% of face value subject to a minimum of
$25 or its equivalent

Negotiation of documents commission plus interest, if applicable at local rate (to be clarified)---1%

Not provided
48
Outward letters of credit (Import)

Processing 



Negotiation subject to a maximum of N5000

N3,000 in addition to maintenance fee on e-Form platform in line with CBN directive 

49
Increases or Enhancements in the LC value: 

N2000
Additional establishment commission should be charged on the amount of any increase for the unexpired period of validity of credit (i.e.  for credits up to 180 days -1% of the face value, for credits up to 270days, 1.25% of the  face value & for credits up to 360 days,1.5% of the face value) 
50
Amendment of LC 
Other amendments-N2000 flat

At the instance of the customer-N2000 per application
51
Pre-Arrival Assessment Report
(PAAR) 

Without value for FX form M-N2500 .With valid FX form M-no charge
N2,500 flat irrespective of payment mode 


Section 9-Internal transactions within Nigeria


52
Charge paid by non-account holders for initiating cash transactions (e.g. local money transfer, Prepaid Card loading), subject to maximum daily limit of
N20,000 
0.3% of the value of the transaction
N200 flat. 

53
Standing Order Charge (In-Branch) at the instance of the customer 

N300 plus external transfer cost e.g. NIBSS/NACSS charge
Intra-bank N300 (One-off)

Inter- bank N300 (one-off) plus applicable in-Branch Electronic Funds Transfer charge 

54
Direct debit/credit
CBN extant policy  prevails

As advised by the CBN
55
Purchase/sale of Treasury Bills for customers 

0.125% on the yield
Processing fee – N100 flat 

Custodian fee – in line with extant Guidelines on Custodianship on Money Market and Other Fixed Income Instruments (applicable on Treasury bills purchase) 


Settlement of trade via S4 – Cost recovery 


Section 10-Electronic banking


56
Internet banking

Token


Maximum of N1,500 ( one –off charge)


Hardware token-
Cost recovery subject to a maximum charge of N3,500 



Software token- No charge. 
However, where the OTP is sent to the customer via
SMS, a charge of not more than N4/SMS shall apply 
57
Bills Payment (Including Bills Payment through other E-
channels 

N100
0.75% of transaction value but not more than N1,200 

58
Electronic funds transfer 


Below N500,000-N70

N500,000 to N10,000,000 

RTGS –N750

Below N10,000,000-N50

N10,000,000 and above 

RTGS –N550

59
Card maintenance fee 
Annual      fee      on    foreign currency
denominated cards-N3,000

Debit card annual maintenance chargeN100
Foreign Currency Denominated debit/credit cards $20/p.a

Naira debit/credit card-N50  monthly
Credit card
60
Issuance          fee/Replacement fee/Renewal fee –

N1000 one of charge irrespective of card type irrespective of the card type
61
Interest charges
2.50%
3%
Debit card
62
Issuance          fee/Replacement fee/Renewal fee
N1000  one off charge for issuing fee
N1000(one off charge irrespective of the card type i.e regular or premium
ATM transactions
63
Not on-us (withdrawal from other bank's ATM) in Nigeria 

No charge(however subsequent circulars revised the fee to N65
N65

64
International withdrawals (per transaction) whether debit/credit card 

N240
2.5% (changes would be advised where applicable)

65

Point of Sale
Wholesale, hotels, food/churches/NGOs, fuel station, airline operators, travel agents—negotiable subject to a maximum of N2000

No change 

66
Bulk Payments (e.g. Salaries,
Dividends etc. 

Negotiable subject to a maximum of N100 per employee
 N50 per beneficiary payable by the sender 

68
Vendor payments (payable by vendor)
N150
Not provided 
69
SMS alert (mandatory)
N4 subject to NCC directives
However, where a customer opts not to receive sms alert, the customer should issue an indemnity (for losses that may arise as a result) to the bank. 

Not more than N4/SMS. (Fees on alerts are restricted to only customer-induced transactions). All associated notifications relating to a particular transaction should be consolidated into a single SMS alert.

Miscellaneous
70
Insurance 
Insurance debits-Customer to negotiate with insurance company
Insurance Premium paid on behalf of customers -
Exact Premium (customer to choose from a list of at least 3 insurance companies to be recommended by the bank

71

Special request for statement of account 
N50 per page
(other than free monthly statement sent to customers)
N20 per page




72

Returned cheques-
0.5% of amount or N5,000 whichever is higher (to be borne by drawer only). This is without prejudice to the Dud Cheque Act 

1% of amount or N5,000 whichever is higher (to be borne by drawer only). This is without prejudice to the Dud
Cheque Act 

73

Business          visit             initiated             by customers
No charge
Local-No charge

Foreign-Negotiable
74
Status enquiry at the request of customer 
(e.g. Confirmation Letter, Embassy Letter, Reference
Letter,             Letter                             of
Indebtedness/Non-indebtedness etc.)  
0.5% of amount, maximum  N5000 ( to be borne by drawer).This is without prejudice to the Dud cheque Act
N500 per request 

75
Confirmation of overseas enquiries to correspondent bank
at the instance of the customer 

N10,000 flat
N500 plus Cost of Postage (if applicable) 

76
Customized deposit booklet 

Negotiable/cost recovery
Cost recovery (No Change)
77
Cost of cheque book
Cheque books-Full recovery of cost plus stamp duties

Counter cheque—N200 per leaflet
Cheque books-Cost recovery (No Change)


Counter cheque—N50 per leaflet




Mobile Money Operators
The new Guide provides specifically for rates to be applied by Mobile Money operators. These rates cover agent initiated transactions, customer initiated transaction as well as other transactions. 
S/N

Description
Old rate
New rate
1
Cash-in (Deposit into MPO Wallet) 
Not provided 
N20

Customer Initiated Direct Debit from
Bank Account 



2
Intra bank funds transfer
N100
To account holder –N100

To non-account holder---Minimum of N50 subject to
1.5% of transaction value or N500, whichever is lower 

3
Cash-out (to be borne by sender) 

Agent-N100
Branch ---N100
Minimum of N50 subject to 1% of transaction value or N500, whichever is lower 

5
Bulk payments
Not provided 
To account holder---Minimum of N100 subject to 1% of transaction value or N300, whichever is lower 

To non-account holder---Minimum of N150 subject to 1% of transaction value or N500, whichever is lower 
7
SMS alert
Not provided
Cost recovery (N4 per SMS)
8
PIN re-issue/PIN reset
Not provided

No charge
10
Monthly issuance of statement of account 

Not provided
No charge
11
Special request for statement of account 

Not provided
N200
12
Mobile             payment    card
issuance/replacement/renewal

N300

N1000
13
Deposit at agent
N100
On-Us Agent (borne by customer) –N100

Off-Us Agent (borne by customer)--Minimum of N50 subject to 1.5% of transaction value or N500, whichever is lower 

SOURCE: https://www.stanbicibtcbank.com/Nigeria/AboutUs/News/The-2017-Guide-To-Bank-Charges

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