UBA, Zenith 8 Others Pocket Over N235bn from E-Banking Fees as CBN Lists Different Types of Bank Charges

• Ten Nigerian banks collectively earned N235.87 billion in electronic banking income in 2022
• UBA reported the highest earnings while Jaiz Bank Plc had the lowest, and Stanbic Bank was the only one to report a decrease in earnings
• The Central Bank of Nigeria has a strict rule on electronic charges, with a fine of N2 million per infraction

Ten Nigerian banks witnessed a significant surge in electronic banking revenue owing to the rise in cashless transactions in Nigeria.

Data from financials submitted by the banks to the Nigerian exchange revealed that the ten banks collectively earned N235.87 billion in electronic banking income in 2022.

This represents a 8.59 percent surge from the N217.24 billion recorded in the previous year.

The banks surveyed include Access Bank Holdings Plc, Zenith Bank Plc, Stanbic IBTC Holdings Plc, Wema Bank Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Guaranty Trust Holding Company and Subsidiary Companies, Jaiz Bank Plc, WEMA Bank Plc, Unity Bank Plc, Fidelity Bank Plc, and Stanbic IBTC Bank.

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Punch reports that UBA reported the highest earnings from customers' electronic transactions among the banks, while Jaiz Bank Plc had the lowest.

Out of all the banks, Stanbic Bank was the only one to report a decrease in earnings from electronic transactions.

Breakdown of the banks' earnings

Here is a breakdown of how much banks made from the surge in customers' cashless transactions in 2022

• UBA: N78.95bn
• Access Bank: N59.65bn
• Zenith Bank: N45.74bn
• GT Holdings: N23.20bn
• Wema Bank: N6.14bn
• WEMA Bank: N6.13bn
• Union Bank: N7.97bn
• Unity Bank: N3.96bn
• Stanbic IBTC: N2.51bn
• Stanbic IBTC Bank: N2.51bn
• Jaiz Bank: N530.26m
• Fidelity Bank: N855m

CBN approve bank charges

UBA, in its financials, described its Electronic banking income are money collected on transactions processed via electronic channels such as ATM, POS, and mobile banking as well as credit and debit card transactions.

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Here is a breakdown of the Central Bank of Nigeria's approved charges to understand how the banks made their money.

• Electronic Funds Transfer:

N50 for transactions above N50,000

N25 for transactions between N5,000 - N50,000

N10 for transactions below N5,000

• Automatic Teller Machines (ATM): N35 charge for the third withdrawal within the same month from other banks' ATMs
• Card Maintenance Fee for Naira Debit/Credit Cards:

N50 quarterly maintenance fee for Naira debit or credit cards linked to savings accounts. $10 quarterly maintenance fee for foreign currency-denominated debit/credit cards

• Hardware Token Charge: subject to cost recovery with a maximum charge of N2,500 (reduced from N3,500)
• Naira Debit/Credit Card Charges: N1,000 issuance, replacement, or renewal fee for regular or premium cards
• Intra-Scheme Money Transfer:

Minimum charge of N50 for sending to an account holder, subject to 1% of transaction value or N300 (whichever is lower)

Minimum charge of N50 for sending to a non-account holder, subject to 1.5% of transaction value or N500 (whichever is lower)

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• Cashless Policy:

2% for individual cash deposits above N500,000

3% for individual cash withdrawals above N500,000

3% for corporate cash deposits above N3 million

5% for corporate cash withdrawals N3 million

• Status Enquiry: N500 per request for confirmation letter, embassy letter, reference letter, letter of indebtedness/non-indebtedness, etc.
• Short Message Service (SMS) Mandatory Alert: based on cost recovery (previously maximum charge of N4)
• Bill Payment via e-Channels: maximum charge of N500 (previously 0.75% of the transaction value subject to a maximum of N1,200)
• Special Request for Statement of a Bill of Account: N200

List of 45 failed banks in Nigeria and dates of closure

In another report, Legit.ng revealed that in the last 28 years, approximately 46 commercial and merchant banks have closed down for various reasons.

The banks had their licenses revoked by the Central Bank of Nigeria between 1994 and 2006.

United Bank of Africa and Ecobank took control of the failed commercial banks.

Source: Legit.ng