Prior to when an Italian national brought in Nigeria’s first COVID-19 case in late February, many Nigerians perceived the contagious virus as a “white man” disease. Little did they know that barely one month later, most parts of the country would be under lockdown in a bid to contain the virus from spreading. Also, a lot of people did not envisage that the outbreak would come with severe economic consequences.
Fast-forward to present times and Nigeria is really struggling to contain the spread of the virus. The adverse economic impacts have also been grave. As part of efforts to assist the Federal Government to combat the virus, some of Nigeria’s biggest companies, and most notable business executives decided to donate money. They have donated a total of N25.8 billion as of April 17th, 2020.
Disgruntled Nigerians want their own donations
Nigerian banks have been particularly instrumental in this regard, having contributed a significant portion of the money. And while the government is very grateful to them, some of their customers are quite displeased. These customers cannot understand why the banks would rather donate to the government instead of crediting their bank accounts directly.
(READ FURTHER: Essential steps companies and employees must take now to survive COVID-19)
To be fair, bank customers have a good reason to be upset. In Nigeria, everyone has been adversely affected by the Coronavirus pandemic. Some people have even lost their jobs, with no immediate hope of getting replacements. Therefore, everyone needs some financial relief which hasn’t been forthcoming, unfortunately. So, it is very understandable for bank customers to expect some money transferred into their accounts by their banks. After all, the banks already have their customers’ account details and could easily send money across to them.
A Social Media backlash against banks
The banks’ “inability” to offer financial assistance to their customers have generated quite a lot of backlash on social media. Some customers even resorted to name-calling, describing the banks as insensitive to the plight of average citizens. They also wondered what the Federal Government is going to do with the billions that have been donated by the companies, even as some other people simply dismissed the donations as a hoax or “audio money.”
https://twitter.com/Fredtony111/status/1250046905561874435?s=19
But there’s a good reason why donations are going to the FG
For most Nigerian companies, providing financial support to the ongoing fight against Coronavirus is probably the best Corporate Social Responsibility (CSR) initiative to undertake at this point. This is because not only does such a move position these companies as socially-responsible corporates, it also entitles them to some form of tax exceptions. Even Nigeria’s Minister of Finance, Budget, and National Planning, Zainab Ahmed, confirmed this in a recent interview with Arise TV.
READ ALSO: Top Nigerian billionaires and their contributions to the fight against COVID-19
Therefore, with CSR expenses being tax-deductible, the best bet for these banks is to donate Covid-19 relief funds directly to the Federal Government so they can better account for the expenses. It may be difficult for banks to get tax deductions if they just transfer money to their customers. While commenting on this, a Relationship Manager at Zenith Bank Plc who doesn’t want to be named, said the following to Nairametrics:
“Donating the money through the CBN is simply the most coordinated approach I can imagine. That way, it is easier for banks and other companies to account for how much they have spent on Covid-19 related CSR.
“Moreover, it could be problematic for banks to transfer money into their customers’ accounts because even though these banks have their customers’ account details, they may not really be able to target such donations at people who really need them. Just imagine that a customer has only N5,000 in his Zenith Bank account but has over N5 million in a different account with another bank. If you decide to transfer N20,000 to his Zenith Bank account based on the assumption that he is broke, he would end up shortening how much people who are actually broke would end up getting.”
READ MORE: FG takes over Yola DisCo, investors to get N26.9 billion refund
Meanwhile, companies are sharing relief materials
It should also be noted that many companies have made efforts to provide relief materials directly to the Nigerians who need them. As a matter of fact, some of the banks that have already donated big money to the Federal Government have also procured and shared relief materials to the people. Examples of them are Wema Bank Plc, Zenith Bank Plc, and, many more. Nairametrics also recently reported that Eko Electricity Distribution Company and the Ibadan Electricity Distribution Company have distributed food and relief items worth millions of naira to residents of Oyo and Lagos states.
Nonsense talk of greed that’s why the country cannot progress, a rich country with the poorest people. Why not use bvn hence we all did bvn linking? Give F.G some part of the donation and credit your customers account with what’s left or vice versa. The weighing balance should be balanced. Without customers there is no bank. You need your FG even much more your customers. Shame!!!
Shame indeed, why is bvn in use then, if someone is having 5k in another and 5m in another, won’t the 5m bank know put a call to the other bank act of his to know? Meanwhile there’s bvn that link all the acts. Mr Zenith bank man if you don’t know what to say pls keep quiet… We re hungry FG and Banks
Why most Nigerians are against giving money FG is because there’s no cordinated approach from the government. And most times is being misappropriated
U bankers are foolish, government would squander d money, d impact tour customers at this point of need is very essential
pls mr emmanue i need your help sir any amount dat you can avoid for me and MY family to buy food stuff dis MY account IBRAHIM Abolore o ACC 0170251513 gtbank
“To be fair, bank customers have a good reason to be upset. In Nigeria, everyone has been adversely affected by the Coronavirus pandemic. Some people have even lost their jobs, with no immediate hope of getting replacements. Therefore, everyone needs some financial relief which hasn’t been forthcoming, unfortunately. So, it is very understandable for bank customers to expect some money transferred into their accounts by their banks. After all, the banks already have their customers’ account details and could easily send money across to them”.
These paragraph reeks of entitlement, why assume that the banks aren’t finding business difficult too? who knows, they might even be forced to cut their staff strength?
Corona virus is surely going to devastate Nigeria. This is because while the government think they are fighting the virus, they are not really doing anything to contain the spread which is occasioned by people coming out because of hunger. Thank God it is not only the poor man’s disease. Even the same irresponsive government officials have started dying of the disease. I pitty all of you!
Nonsense..stupid excuses n unreasonable. Can’t believe professionals n learned men in the so called banking industry are saying this shit. Nigeria what has this country turn into,will Nigeria ever become better… I s a shame I am a Nigerian
The BVN should have been used then. All banks should transfer to the CBN and then the CBN should send money directly to the beneficiary using their BVN. Since all accounts an individual has is expected to have a single bvn
I am very surprised that a loan i collected from bank prior to the lockdown was instantly withdrawn as i transferred money
to the account.
Just sent our money to us because we are in difficult situation .
Just sent our money to us because we are in difficult situation .
Well at first they never care and it never their concerns, they prefer we the citizen to die instead of surviving.
They kno what they doing, after all they are the money themselves why would they transferred money to customers
Please, use the BVN. As it unifies account together.
Please, use the BVN. As it unifies account together.
Pls is there any sign that government is really fighting covid _19 till date? Is there reduction in the spread or the rate of the infected persons is growing rapidly I think that zenith bank manager is foolish enough to cite that example of someone having 5000 naira in zenith bank account and have 5milion in other Bank account….I think you people make it compulsory for everyone to have BVN which you said it link all our other Banks account together,How long we you continue to fool us ?you cooperate scammer that call your self Banks you charge and deduct our money massively you dump us coperately imagine I have not been using ATM for long but every time my bank charge me 52naira twice in a month for maintenance, sometime I withdraw from counter they still charge me so many untitled charge just to mention few,your directors and government are birds of same feather that flock together….I’m not surprised to read that news from one of you .
Pls is there any sign that government is really fighting covid _19 till date? Is there reduction in the spread or the rate of the infected persons is growing rapidly I think that zenith bank manager is foolish enough to cite that example of someone having 5000 naira in zenith bank account and have 5milion in other Bank account….I think you people make it compulsory for everyone to have BVN which you said it link all our other Banks account together,How long we you continue to fool us ?you cooperate scammer that call your self Banks you charge and deduct our money massively you dump us coperately imagine I have not been using ATM for long but every time my bank charge me 52naira twice in a month for maintenance, sometime I withdraw from counter they still charge me so many untitled charge just to mention few,your directors and government are birds of same feather that flock together….I’m not surprised to read that news from one of you .