Nigerian banks rake in N138 billion in revenue from e-banking platforms

shakirudeen taiwo

May 22, 2017 3:26 PM

The figure represents twenty-six percent (26%) increase in revenue against N109.1 billion paid by customers in 2015.

E-Banking

The organised labour and citizens have expressed concern over the exorbitant cost of electronic banking in Nigeria.

According to the report by a local newspaper, the Vanguard, top ten Nigerian banks made a revenue of N138 billion ($437 million) from its customers through charges on their electronic banking platforms.

The figure, represents twenty-six percent (26%) increase in revenue, as N109.1 billion was made in 2015.

The charges are from ATM card issuance, replacement and renewal charges; Hardware token and soft token issuance charges; ATM withdrawal charges; Funds transfer charges; and SMS alerts.

All these charges are stipulated in the Guides on Bank Charges of the Central Bank of Nigeria (CBN).

The tier-one commercial banks involved in this survey are Guaranty Trust Bank (GTBank), Diamond Bank, First City Monument Bank, Access Bank, First Bank of Nigeria, Fidelity Bank, Stanbic IBTC, United Bank of Africa (UBA), Zenith Bank and Union Bank of Nigeria.

The CBN recently reviewed the charges on the use of some these electronic banking platforms. Nigerians are now to pay N50 monthly ATM card maintenance charges (N600 annually) and N4 per transaction SMS notification from commercial banks.

Mr Oju Ogubunka, the President of Bank Customers Association of Nigeria (BCAN) noted that: “The hiked cost will impact negatively on wider adoption of e-payments in the country. Banks, at the detriment of consumers, will further enrich themselves. Non e-payment channels that are cheaper are likely to witness higher patronage with some obvious implications.”

Statistics from the CBN and Nigerian Inter-Bank Settlement System (NIBSS) showed that the high rate of e-banking platforms adoption by Nigerian banking population.

In 2016, the volume of transactions performed through these platforms was estimated as N71 trillion in 2016.

shakirudeen taiwo

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