First Holdco Plc and three other banks generated N37.12 billion as account maintenance fees for customers in the first half (H1) of 2025.
This is about 29 per cent increase over N28.8 billion generated in first half of 2024. The remaining three banks are FCMB Group Plc, Sterling Financial Holdings Company Plc and Wema Bank Plc.
The breakdown showed that First Holdco declared N19.6 billion as account maintenance fees in H1 2025, about 14.5 per cent increase over N17.2 billion in H1 2024, while FCMB Group posted N8.94billion account maintenance fees in H1 2025, up by 54 per cent from N5.8billion declared in H1 2024.
In addition, Sterling announced N3.68billion account maintenance fees in H1 2025, representing an increase of 29 per cent from N2.85billion reported in H1 2024. Wema Bank declared N4.861 billion account maintenance fees in H1 22025, an increase of N3.01 billion announced in H1 2024.
Nigerian banks are competing with Fintech companies such as, MoMo Payment Service Bank (MoMo PSB), Fintech subsidiary of MTN Nigeria. Airtel SmartCash, Opay, Palmpay, others that charges customers zero charges on fund transfer to another Fintech company or commercial banks.
As technology evolves, customer demands continue to affect how businesses operate especially in the banking sector. In recent times, fintech startups have raised the bar, offering customers easier, faster, and cheaper financial services particularly in areas such as zero transfer fees, more attractive interest rates on savings, full online banking experience, speed and simplicity.
These competitive advantages are endearing them to an increasing number of customers and strengthening their position in the financial sector.
The CBN had indirectly reintroduced Commission on Turnover fee as the Current Account Maintenance fee. The apex bank in 2013 commenced the phased reduction of the CoT, which terminated with the zero CoT charge this year.
But in a circular to banks recently, the CBN replaced the CoT with CAM but subject to a maximum of N1 per N1,000 mille.
The circular was titled, “Introduction of Negotiable Current Account Maintenance Fee Not Exceeding N1/mille.
It stated, “The revised guide to bank charges which came into effect on April 1, 2013 provides for a phased elimination of the COT charges in the Nigerian banking industry. Under the guidelines, a zero COT regime was to come into effect from January 2016.”
The CBN noted that while the gradual phase out was being observed, some banks continued to charge account maintenance fee in addition to the reduced COT rate, which in effect amounted to double coincidence of charges.
It stated, “The CBN is not oblivious of the impact of declining crude oil prices, operation of Treasury Single Account, and other market turbulence on the viability and stability of the banking system.
“In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 Zero COT regime as jointly agreed during the 311th Bankers Committee meeting of February 12, 2013 has come into effect. In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer-induced debit transactions. Please ensure strict compliance.”
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