Why Do Nigerian Banks Have So Many Charges

The Nigerian Banking Sector is an unfortunately over-bloated industry that thrives on systemically entrenched policies that terribly defrauds us Nigerians and lives on cheating the average citizen of the hard earned money that is entrusted in their care to help save and invest.

I have lived in UK a few years now and NEVER has my bank ever charged me one penny for bank transfer.

I’m sorry. But that 52 naira 50kobo that Nigerian banks deduct per transaction, what exactly is it for?

Why is no one speaking out against this blatant fraud?

Next is the fraudulent “Card Maintenance Fees” by our Nigerian banks. Please how are you maintaining a card that lives in my wallet?

I have about 3-4 UK Bank Cards here. Both credit cards and debit cards.
I have NEVER paid any such thing as a “Card Maintenance Fee”.

You want to send money to someone from your Nigerian bank account and you first have to plan an extra 52 naira 50kobo.

Money that is electronically sent from one Nigerian bank account to another Nigerian bank account

What exactly is the charges for?
Why is this fraud tolerated?

Someone said the charges goes to NIPOST. I want to believe it is mere trolling as it makes absolutely no sense.

Please, How is Nipost involved in an ELECTRONIC money transfer?
Did I put the money in an envelope and post it? Or what?

We deserve better.
This is systemic cruelty.

When I applied for ATM Cards in UK (both debit and credit), I was NEVER charged a penny.
The card is given free.
And “maintenance”, if there’s any such thing, is done free.

IF we never get the chance to see how things happen in other places, we won’t know we are being cheated.

When I applied for an ATM Card in Nigeria, I was charged 1,000 naira to have one.
And I’m being charged some extra regularly in the pretence of an imaginary “Card Maintenance Fees”.

This is systemic corruption and a fundamental banking fraud aimed at impoverishing us Nigerians.

Let’s do a little maths, dear friends.

According to NIBSS, as at December 2017, there was almost 65,000 daily Electronic Fund Transfers in 2017.

At 52.50 naira per transaction, that’s over 3 million naira a day.
And about 1 billion naira a year.

Should this fraud continue?

A bank will claim it cares about you, send you an SMS on your birthday or on special occasions then later come back to charge you for that same SMS.
A totally unsolicited SMS I never asked you for.

This is absolute madness.
Why are you charging me for wishing me happy birthday?

And for those saying, “banks aren’t at fault, it’s the central bank”

Most of us have no business with central bank but with our banks.

If we put the fire on our banks, they will pass the message across to the central bank and the other fraudsters benefitting from this madness.

It actually looks like what we have is a lot of flashy big-for-nothing banks that have lost initiative for serious banking and profitable investments, so they have to rely on many cruel baseless and inconsiderate charges to remain in business- ALL at the detriment of customers.

Because it’s too unfair when an average Nigerian bank user sits down to really analyse and share what their experiences are with banks.

They all seem to be a necessary evil and an unavoidable calamity-
a disaster we just have to live with because we really have no other choice.

And talking of use-of-ATM charges,
UK has ATMs called “free cash machines” that are available everywhere for people to make withdrawals without any extra cost on the bank user.

I wonder why Nigerian bank leaders are aware of good initiatives like this but will never do the same.

And to those who think that Nigerian banks are right to continue the daily financial rape of its bank users accounts because of the problem of power, lack of internet, lack of technical expertise etc; I only have to say to you that your perspective is largely myopic and narrow.

In all sincerity, such an opinion that excuses unfair excessive bank charges on Nigerians is quite shallow.

The problems of the Nigerian Banking Sector- wether it is power, internet, diesel or whatever challenges they have can NOT and should NOT be transferred to the bank user.

It is VERY wrong and inconsiderate to defend the financial fraud that Nigerian banks perpetrates on bank users with excuses of no power,no diesel or whatever else.

If the banking industry is having challenges, they should seek help from the govt, not transfer cost to bank users.

In sane countries, government ensures that banks and businesses have a favourable environment that makes it easy for them to do their trading in a safe, sensible, fair and well regulated way that benefits the banks and protect the consumer from oppression and excessive charges.

And IF Nigerian banks are having that problem, then that is exactly what should be expected of them- channel the frustration you face to the govt, NOT transfer the cost to bank users and even then utilise that opportunity as a chance to excessively milk people who bank with you.

So how do banks make money?
Banks make profits from loans & investments. Among others.
They can help fund your business or buy a house and you return with interest.

That’s how banks make legitimate profits. NOT by excessive illegal fraudulent charges like Nigerian banks do.

Imagine checking your own account balance and your bank charges you for it. Simply checking to see IF a money you are expecting has arrived and a bank deducts your money for doing that.

There’s too much systemic and condoned fraud that we need to Reform Nigerian Bank urgently.

People get their cards swallowed in an ATM for whatever reasons and go back to their banks to request a replacement and they are charged for it.
Charged for something that’s not your fault. Imagine.

These are senseless excessive baseless charges. We need to #Reform9jaBanks now.

You will open a “savings account” with a Nigerian bank, and leave an amount of money there untouched for a long time thinking it’s intact only to come back and meet it LOWER than the amount you put there.
Because of all sorts of excessive deductions.

Why should this continue?

Just a few of the excessive bank charges one has to deal with.

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