Monday, January 24, 2022

Nigerian banks begin charging customers for failed transactions

If there’s no money at the time of the failed transaction, the charges will be withdrawn from the account whenever it is funded.

• November 20, 2020
Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

Nigerian banks have started charging customers for failed transactions, a move that could further compound economic hardship already assailing the masses.

The charges were imposed following a CBN directive earlier this year that directed banks to penalise customers who initiate direct debit transactions on their account but lack funds to complete the transaction.

In an email notice sent out to customers by Stanbic IBTC on Thursday and seen by Peoples Gazette, the penalty of one percent of the amount being transferred or N5000 of such, depending on the highest fee, will be charged against the customer who breach the new guideline.

If there’s no money at the time of the failed transaction, the charge will be withdrawn from the account whenever it is funded, IBTC said.

Direct debit is a standing order initiated by an account holder that enables the bank to debit a specified amount from the customer’s account at an agreed date.

The guide to charges by bank and non-bank financial institutions was created to streamline the application of charges on various products and services offered by banks and other financial institutions in Nigeria to their customers.

This guide came into effect in January, replacing the previous guide that was issued in 2017. The guide was criticised by economists as dangerous and insensitive because most Nigerians cannot afford to continue paying for a service they never received — a criticism the CBN rejected as unfounded.

More from Peoples Gazette

French fashion designer Thierry Mugler dies aged 73

Showbiz

French fashion designer Thierry Mugler dies aged 73

Stars like Beyoncé, Lady Gaga and David Bowie were among the celebrities that wore his clothes.

President Sergio Mattarella

World

Italy’s presidential election begins today

Former Prime Minister Silvio Berlusconi announced he was withdrawing from the race last Saturday.

vaccine

Health

Month-long COVID-19 lockdown in Xi’an lifted ahead Chinese new year

Curfews have been lifted while public transport and taxis can resume regular operations in Xi’an, home to 13 million people.

Weed

Rights

Five men docked for smoking marijuana in public

The police charged Saheed Raimi, 47; Atari Samson, 20; Abayomi Adeduro, 31; Samson Abiodun, 22 and Odedele Yemi, 25, with two counts….

Atiku Abubakar

Politics

Atiku too old to be PDP presidential candidate in 2023: Kassim Afegbua

“(Atiku) Abubakar and his northern aspirants should support the aspiration of upwardly mobile and younger elements from the South to fly the PDP flag.”

Sanwo-Olu and Tinubu

Lagos

EXCLUSIVE: Sanwo-Olu increases Alpha Beta’s monthly payment to N2.5 billion to fund Tinubu’s presidential election

Nigerians had long feared Mr Tinubu’s presidential ambition would be borne by the politician’s vessel of ill-gotten cash and unredeemed favours.