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Long queues return to banking halls, as customers avoid new ATM withdrawal limits 

Customers of various banks now prefer to withdraw cash over the counter in the banking hall to using Automated Teller Machines (ATM).

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CBN’s new bank charges takes off today, Customers blame long queue in banking halls on new ATM withdrawal limits 

Customers of various banks now prefer to withdraw cash over the counter in the banking hall to using Automated Teller Machines (ATM). This is because banks have reportedly reconfigured their ATMs to dispense smaller amounts of money, which is not convenient for the customers.

A customer of GTBank, James Moneme said that he had gone to withdraw N150,000 at a Polaris Bank ATM only to discover that the ATM pays only N10,000 at once.

CBN: Unconventional monetary policies needed to grow and diversify the economy  

Isaac Okoraformade

“I withdrew N10, 000 up to 10 times before I could withdraw N100, 000 before the  ATM stopped dispensing cash. It was time-wasting. I had to go and look for a GTbank and entered the banking hall and used my ATM card to withdraw the remaining N50, 000 from the PoS over the counter.

 “If I knew I would still have to go the bank, I would not have wasted time withdrawing 10 times from the ATM machine,” Moneme said.

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Fatima Wasiu, another customer was quoted saying, “If you are not patient, you cannot be waiting at the ATM because you have to stay longer on queues at the ATM to withdraw cash. You will just be watching those in front of you withdrawing several times before it gets to your turn.

 “Yet, the banks will still charge you more for withdrawing many times from the ATM after they reconfigured their ATMs to dispense less cash. Now, I prefer to enter the bank and withdraw my cash from the counter.”

[READ MORE: CBN says banks create N2 trillion new loans in 6 months)

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Many other customers interviewed had the same complaint; they said that withdrawing money at the ATM was no longer fast because they would have to repeat the same transactions several times before they would get the amount they needed.

Banks’ way of escaping CBN’s new charges? Recall that the Central Bank of Nigeria had reviewed downward most charges and fees for banking services as contained in the new guide to charges by banks, other financial, and non-bank financial institutions, with effect from January 1, 2020, as Nairametrics reported.

The charges reviewed include ATM withdrawal fee from N65 to N35, card maintenance fee, charge for hardware token and bill payment via e-channels among others. The Director, Corporate Communications, CBN, Isaac Okorafor said that,Isaac Okorafor

 “reduction in the amount payable for cash withdrawals from other banks’ ATM (Remote-on-us) from N65 to N35, is after the third withdrawal within one month.”

However, banks have devised a means to exploit the customers and still be at the receiving end thereby defeating the essence of the regulator’s slashed charges. Many banks reconfigured their ATMs to dispense not more than N10, 000 only at once, which eventually returned the charges on the customers.

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Speaking on the issue, the former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe said that after the slash in charges, banks were looking for other ways to make more money because their profits were usually from charges as they were not lending out monies.

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Solution given: Nzekwe said it was important for the CBN to monitor banks’ activities properly because they had the tendency to make money for the customers at every slight opportunity by slamming charges on them.

The CBN had announced that any bank who do not comply with the new charges would be made to pay a penalty fine of N2 million. Hence the CBN should also look into this issue and monitor their activities if possible impose fines so as to act as a deterrent for others.

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

2 Comments

2 Comments

  1. Anonymous

    February 1, 2020 at 6:28 am

    It’s not cos they are trying to impose charges, it’s cos 98% of these machines are old. If they attempt to withdraw 40k at once, the quality of notes provided will not pass through the machine multiple times. This causes cash jams, which will indirectly not make the machines work.

    • Joe

      February 3, 2020 at 10:25 pm

      Mr Anonymous, there is no other explanation to this action of our banks. Nobody said they should increase to 40k, let them just leave it at the 20k, afterall the 20k was working before. Its really frustrating.

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Energy

Nigeria to fix irregular power supply in 40 years- Senate

The four decades is needed due to underfunding and the FG’s failure to fix the challenges of electricity generation.

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Customers to pay for metering through cost of tariff- NERC

The Nigerian Senate has said that it will take Nigeria 40 years to fix irregular power supply.

This was disclosed by the Senate Committee on Power on Tuesday after the Minister of Power and his team made a presentation to the Committee, according to Guardian.

The four decades wait, according to the lawmakers, is due to underfunding and the Federal Government’s failure to fix the challenges of electricity generation.

The committee was astonished by the submission of the Minister of Power, Mamman Saleh, that of the N165billion required for capital projects in 2020, N4billion was given as bribe of which only N3billion was cash-backed.

In lieu of this, the Committee dismissed claims made by the minister over raising hope on early provision of constant power supply, while Managing Director of the Transmission Company of Nigeria (TCN), Sule Ahmed Abdulaziz, painted a gloomy picture during the ministry’s budget defense.

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A member of the Committee, Danjuma Goje, expressed concern that based on Abdulaziz’s presentation, N165billion was proposed, but the ministry gave N4billion in envelope, insisting that it would take 41 years to deliver constant electricity when N165billion is divided by N4billion.

Backstory

Recall that Nairametrics had earlier reported that it will take nothing less than $100 billion to enable stable power supply in Nigeria.

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What they are saying

Mr. Danjuma expressed pessimism over hopes of stable power supply in the country. He went as far as stressing that even if ongoing projects are being completed there is still no hope for stable transmission of power in the country.

Mr. Danjuma was quoted as saying: “Going by the minister’s presentation that transmission gas increased from 5000 to 8000 megawatts, it is not enough. When dishing out figures, we should bear in mind that capacity, transmission, and distribution have increased and that Nigerians, manufacturers, and industrialists want to see stable electricity.

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ENDSARS

#EndSARS: ECOWAS calls for protesters to remain peaceful in their demonstrations

ECOWAS has called on protesters to be peaceful in conducting their protests.

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ECOWAS ministers recommend gradual re-opening of borders 

The Economic Community of West African States (ECOWAS), has called on protesters to be peaceful in conducting their protests and urged Nigerian security operatives to exercise restraint in the handling of protests.

This was disclosed in a statement by the organization on Tuesday and comes on the heels of statements by other International bodies and personalities, who have expressed worry over the nature of brutality meted on protesters, especially after the Lekki shootings.

“ECOWAS Commission notes with concern that demonstrations by Nigerian youth calling for Police reforms, particularly the abolition of the Special Anti-Robbery Squad (SARS) of the Nigerian Police force, accused of misconduct by those demonstrating, have turned violent,” they said.

The body said it recognizes the right to peaceful protests and also called for protesters to be peaceful, due to the rising reported cases of lootings post protests during the curfews.

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While ECOWAS recognizes the right of citizens to freedom of expression and peaceful assembly and protests, it also wishes to stress that those rights should be exercised in a nonviolent manner.

“In this regard, ECOWAS calls on all protesters to remain peaceful in the conduct of their demonstrations. It also urges the Nigerian security operatives to exercise restraint in the handling of the protests and act professionally.”

Bottomline

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The tone of ECOWAS’ message is different compared to the rest of other stakeholders including the statement of the Lagos State Governor, House of Reps Speaker, and the Vice President, who all acknowledged that the protests were peaceful and the protesters were attacked and that the violence from the curfews was not done by the protesters but by hoodlums.

The ECOWAS message is also the first statement by West Africa’s most important regional body since the #EndSARS protests started in the first week of October.

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Economy & Politics

Kano State presents N147.9 billion budget for 2021 fiscal year

Governor Ganduje has presented the total sum of N147.9 billion as Kano State’s proposed budget for 2021 fiscal year.

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Dala Inland Dry Port set to take off after N2.3 billion investment - Kano Govt., DB to support 1.26 million farmers with $95 million

Kano State Governor, Abdullahi Ganduje has presented the total sum of N147.9 billion as its proposed budget for 2021 fiscal year before the Kano State House of Assembly today.

Presenting the budget tagged “Budget for Economic Recovery and Sustainable Development,”Governor Ganduje said the budget is in furtherance of his administration’s vision for diversification of the state sources of revenue which will engineer development in the future.

Backstory: Recall that Nairametrics had earlier reported the drive and optimism by Kano State government to boost its Internally Generated Revenue. This might probably explain why IGR increased by almost 10% between 2020 allocations and proposed estimates for 2021.

What you should know: The breakdown of the budget verified by Nairametrics showed the following key highlights:

  • The total budget increased by approximately 7.0% from N138.279 billion in 2020 to N147.935 billion in 2021.
  • Capital expenditure for the periods under view increased by 10.93% from N60.485 billion to N67.095 billion.
  • Recurrent expenditure also increased from N77.79 billion to N80.839 billion, indicating a 3.92%. increase for the periods under view.
  • Internally Generated Revenue (IGR) increased by approximately 10% from N24 billion to N26.395 billion during the period under view.
  • A breakdown of the budget showed that the Education sector has over N37 Billion representing 25% of the total budget while the health care delivery service has over N25 Billion representing 17% of the total budget.

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