Card maintenance: Banks disobey NASS directive

Investigation by National Daily have revealed that commercial banks in Nigeria are not ready to heed to the latest resolution of the Senate that ordered the Central Bank of Nigeria (CBN) to suspend the Automated Teller Machine (ATM) card maintenance charges.

The resolution, National Daily  gathered that , also directed banks to review their charges on customers.

However, checks by National Daily across banks showed that the CBN had not given any form of directive or circular to banks respect to the resolution.

The resolution came as part of a motion on illicit and excessive bank charges on customers’ accounts, sponsored by Senator Olugbenga Ashafa representing Lagos East.

The resolution also directed its Committees on Banking, Insurance and other Financial Institutions and Finance to conduct an investigation into the propriety of ATM card maintenance charges in comparison with international best practices and report back to the Senate.

But some interest and professional bodies have kicked against the resolution saying banks suffer untold hardship in the provision of business enabling infrastructure for their daily business.

According to the chief executive of Chattered Institute of Bankers Nigeria (CIBN), Mr. Uche Messiah Olowu, “The lawmakers did not know the context for which those charges were levied.

“They are not making profit out of it but to offset the cost of buying the machine, the cost of administering the service. As you can see, we no longer have theft.

“The banks provide their own electricity, their own water, and other inevitable costs. In other climes, these charges are taken. No doubt about that, even in developed markets. What we should be fighting for is how do we build productivity so as to bring down cost, and the excessive charges would be reviewed.”

He claimed that what the banks are recouping is the cost of maintenance and not charging Nigerians excessively.

“What is the contribution to the overall total profit of the banks? We should rather try as much as possible to be productive enough so that the cost of production would come down and the value for infrastructure to enable the banks carry out effectively and the price would come down

“On our part, we will continue to ensure professionalism is our watchword. We will continue to discipline any banker that refuses to adhere to professional standards,” CIBN boss said.