GTB, UBA and 9 other banks make N72.7bn from Nigerians in 6 months to maintain their bank accounts

The United Bank of Africa (UBA), Guaranty Trust Bank (GTB), and 9 other commercial banks have made N72.7bn from Nigerians in 6 months to maintain their bank accounts.

This is according to data extracted from the half-year financial statements of the listed commercial banks in the Nigerian stock market.

Zenith Bank, Access Holdings, GTCO, and UBA led. Others are First Bank, FCMB, Sterling Bank, Stanbic Bank, Fidelity Bank, Wema Bank and Unity Bank.

The amount generated from account maintenance charges in half-year 2023, represents a 7.44% increase compared to N67.690 billion recorded in the corresponding period of 2022.

According to the Central Bank of Nigeria, the account maintenance fees are charged on current accounts only in respect of customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank

Banks’ earnings from account maintenance charges, though low when compared to other revenue streams, still make up a significant portion of their non-interest income.

According to the directive by the CBN on bank charges, Nigerian banks are allowed to charge their customers a “negotiable” N1 per mille.

What this means is that banks can charge N1 per N1,000 debit transactions on current accounts. Banks’ account maintenance charges come in the form of COT (i.e., Commission on Turnover) which is a charge levied on customer withdrawals by their banks.

The breakdown includes Zenith Bank – N21.02 billion, Access Holdings – N13.363 billion, GTCO – N10.481 billion, UBA – N9.64 billion, First Bank – N5.19 billion, FCMB – N3.85 billion, Stanbic IBTC – N2.643 billion, Sterling Bank – N2.392 billion, Fidelity Bank – N1.769 billion, Wema Bank – N1.636 million and Unity Bank – N745 million.

✍️ Temitope Hassan