By Kelechi Mgboji
Assistant Business Editor
Seven banks sampled by TheNiche made N13 billion from Current Account Maintenance (CAM) fee in the first quarter of 2016 (Q1 2016).
The Central Bank of Nigeria (CBN) indirectly reintroduced Commission on Turnover (CoT) when it came up with CAM after CoT was supposed to have been phased out in 2016.
Unaudited accounts of the banks for Q1 ended March 30, 2016 showed that while some improved earnings from CAM, others recorded declines.
Zenith Bank had the highest CAM fees at N5.4 billion, followed by FBN Holdings’ that rose 119 per cent, from N1.4 billion in Q1 2015 to N3.07 billion Q1 2016.
FCMB Group recorded N740.9 million, an increase of about 21 per cent from N611 million in Q1 2015. Union Bank gained N283 million.
However, some banks suffered decline in CAM earnings as current account deposits dropped due to the economy headwinds.
CAM earnings by United Bank for Africa (UBA) declined 55 per cent, from N2.56 billion to N1.15 billion, Access Bank’s dropped 40 per cent to N487 million as against N817 million in Q1 2015.
Guaranty Trust Bank (GTBank) recorded a decline of 32 per cent to N1.97 billion as against N2.9 billion in Q1 2015.
The CBN had in 2013 commenced a phased reduction of CoT which terminated with zero CoT charge this year in line with a directive issued by former CBN Governor, Lamido Sanusi.
But a circular signed by CBN Director of Financial Policy and Regulation, Kevin Amugo, replaced CoT with CAM subject to a maximum N1 per N1,000 (Mille).
The circular reiterated that “the Revised Guide to Bank Charges (RGBC) which came into effect on April 1, 2013 provides for a phased elimination of CoT charges in the Nigerian banking Industry.
“Under the Guidelines, a zero CoT regime was to come into effect from January 2016.”
The CBN noted that while the gradual phase out was being observed, some banks continued to charge Account Maintenance Fees in addition to reduced CoT, which amounted to double charges.
“The CBN is not oblivious of the impact of declining crude oil prices; operation of Treasury Single Account; and other market turbulences on the viability and stability of the banking system.
“In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 Zero CoT regime as jointly agreed during the 311th Bankers Committee meeting of February 12, 2013 has come into effect.
“In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer induced debit transactions.
“Please ensure strict compliance.”
