The scourge of excessive bank charges

Since the abolition of Automatic Teller Machine (ATM) charges of N100 by the CBN, commercial banks are no longer paying attention to ATMs in their various branches across the federation. Instead they have resorted to paying lip service to this vital area of operation because the scrapping of these charges on ATM transactions by the […]

Since the abolition of Automatic Teller Machine (ATM) charges of N100 by the CBN, commercial banks are no longer paying attention to ATMs in their various branches across the federation. Instead they have resorted to paying lip service to this vital area of operation because the scrapping of these charges on ATM transactions by the CBN has short-circuited their ignoble means of exploiting their customers through ATM transactions. Most of the ATMs are being left in a non-functional state especially during the weekends or long public holidays with disappointing messages like: ‘Out-of-service’ or ‘Unable-to-dispense-cash’ by commercial banks, because rendering ATM services have become unattractive to them.
Another major challenge facing bank customers in the country is the issue of faulty Automatic Teller Machines. I had an ugly experience recently when I made a withdrawal at one of the ATMs in Abuja. On that fateful day, I withdrew N40,000 from my account; but to my utmost  surprise, the ATM debited N80,000 from my account – something that nearly got me mad. After several complaints to the commercial bank in question, the money was credited back to my account after 48 hours, without any apology! Some Nigerians are going through the same experience on daily basis without raising an eyebrow. If this menace is not checked, it may erode the confidence Nigerians have in Automatic Teller Machines which would invariably affect the cashless policy being promoted by the Central Bank.
As a result of some sharp practices, Nigerian banks have come under great suspicion, with allegations of manipulation of financial records to boost profits that turn out to be “paper profits”, “round-tripping”, insider dealings, hidden charges on customer transactions and other unethical activities that are completely out of tune with credible banking. Commercial banks should not lose sight of their primary role as intermediaries that supply financial services to both borrowers and lenders in the economy. Discharging these responsibilities should not be a licence to side track laid down rules.
Not too long ago, the House of Representatives Committee on Finance alleged that 15 out of the nation’s 21 commercial banks routinely defraud the Federal Government of billions of naira through sharp practices such as tax evasion, forgeries and shortfalls in tax remittances. It is disheartening to learn of such troubling developments in the banking sector, which should be above board as an institution that thrives on trust and respect of the banking public. These alleged offences, which are criminal in nature, were reportedly discovered by the committee during months of investigation of the financial sector. In all the areas covered, affected banks were found neck-deep in underhand practices. The committee described the offences as “despicable acts of gross misconduct that depict the unscrupulous and roguish character of some banks and their Chief Executive Officers (CEOs).”
The CBN Governor Malam Sanusi Lamido Sanusi, on assumption of office in 2009, sacked some CEOs of commercial banks for running those banks like their private estates through misappropriation of depositors’ funds and gross abuse of office. I think the time is ripe again for the apex bank to unleash its sledge hammer on those corrupt CEOs in order to restore financial discipline in the banking sector.

Nwobodo Chidiebere ([email protected])