Business

Consumer Advocacy Foundation of Nigeria CAFON Set To Launch Another Consumer Protest Against CBN Charges

Published

7 years ago

May 25, 2017 10:35 am

In view of the public outcry against CBN’s directive to increase approved bank charges with effect from May 1 2017, Consumer Advocacy Foundation of Nigeria CAFON is set to launch another consumer protest tagged #CloseOneMillionBankAccountsIn2017.

The aim is to mobilse Nigerian consumers to resist what it described as “excessive charges’’ by Nigerian banks. The Consumer Advocacy NGO initiated the #NoBankingDay protest on March 1, 2016, to draw national attention to bank consumers’ dissatisfaction with excessive and illegal bank charges.

CAFON Founding President, Ms Sola Salako, in a statement stated that some of the disputed and unpopular charges include: a 600% increase in Debit Card Maintenance Fee from N100 per annum to N50 per month; Excessive Account Maintenance Charges; Mandatory SMS service charged at N4/SMS as against actual cost of less than N1 for bulk SMS; N65 per ATM other bank withdrawal after 3 withdrawals.

“The banks have dubiously altered this to ensure consumers exceed the monthly 3 free withdrawals quickly by programming their ATM to dispense only N10,000 maximum per transaction for other bank’s customers as against N40,000 maximum possible for their own customers’’, the statement added.

“A recent front page report in Vanguard stated that top ten banks raked in over N160bn from online transactions charges in 2016 alone! These excessive charges have been providing massive income for the banks from ancillary online platforms as against the core banking services, thus posing a significant threat to the success of CBN’s own Cashless Policy initiative’’, Salako added.

She explained that the proposed #CloseOneMillionBankAccountsIn2017 consumer action is predicated on the need to drastically reduce the numbers of active or live bank accounts from which “these unreasonably excessive charges are regularly deducted’’.

According to the group, Nigerian banks are known to be deducting multiple charges from every account open in their books irrespective of whether there was any transaction done in the month or not; adding that ‘’even dormant accounts are levied with SMS alerts and VAT charges’’;
saying consumers have also complained that they are often charged for an unsolicited birthday greeting SMS by most banks.

“Since the CBN has refused to stop the alleged sector extortion via excessive charges, we advise consumers to close all non-essential bank accounts immediately. That way, we can minimize the available channels from which they make such stupendous income at the consumer’s expense”, Salako further explained.

“The proposed protest is simple, non-confrontation and an exercise of the consumer’s right to choose. It is also pragmatic, frugal and can save consumers billions in excessive bank charges’’, she harped.

CAFON pointed out that most consumers operate more than one bank account, sometimes in multiple banks.

“All these bank accounts are subjected to multiple charges monthly even when they have not been active. We urge consumers to audit their numerous bank accounts, identify the most essential to their lifestyle, employment or business needs, keep those and initiate the process to close the non- essential accounts in their personal and business names immediately. Corporates must also do the same to minimize what they lose monthly to excessive bank charges’’, the group further urged consumers.

“If consumers take action immediately, we can prevent the charges for the month of May. All an account holder needs to do is write the Branch Manager a letter instructing the bank to close all non-essential accounts with immediate effect listing them by NUBAN numbers.

Make sure to take a copy of the letter to be stamped received with date and give the account Name, Number and Bank where your balance in the closed accounts should be transferred. Once this is completed, the banks have no right to charge that account again from date of receipt of your letter’’.

To ensure that the campaign is successful, CAFON promises to provide online support materials to assist consumers in enforcing their rights. ‘’We shall also provide a link for consumers to list their closed accounts as we countdown to our one million closed bank accounts target by Dec 31 2017. We expect all aggrieved consumers to join the protest and mobilize others to take action too. Collectively we can force a reduction of these obscene profiteering in the name of multiple add-on bank charges. Enough is Enough’’.

Business

EFCC freezes over 300 accounts linked to illegal FX trading

Published

5 hours ago

April 24, 2024 8:11 am

BodexNG

The Economic and Financial Crimes Commission (EFCC) has frozen over 300 accounts linked to illicit foreign exchange (FX) trading.

Speaking in Abuja on Tuesday, Ola Olukoyede, EFCC’s chairman, said the agency secured a court order to freeze the accounts.

“We got an order to freeze those accounts imagine what would have happened if we didn’t seize those accounts,” he said.

“There are people in this country doing worse than Binance,” he said.

Olukoyede said over $15 billion passed through one of the platforms in the last year, which was not regulated by financial regulators.

The development comes a day after Kenya’s police service reportedly arrested Nadeem Anjarwalla, the Binance regional manager for Africa.

On March 22, Anjarwalla escaped from an Abuja guest house where he and Tigran Gambaryan, his colleague, had been kept by the federal government.

Anjarwalla was said to have escaped after guards led him to a nearby mosque for prayers during the Ramadan fast.

Anjarwalla and Gambaryan were charged with tax evasion and money laundering by the federal government. The duo were arrested and detained on February 28.

On February 27, 2024, Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), said $26 billion passed through Binance Nigeria from unidentified sources in one year.

Cardoso said the apex bank was collaborating with different agencies, including the EFCC, the police, and the office of the national security adviser (NSA) to tackle illicit financial flows in the country.

Business

Dangote refinery slashes diesel price to N940 per litre

Published

23 hours ago

April 23, 2024 2:24 pm

BodexNG

Dangote Petroleum Refinery has announced another reduction in the prices of both diesel and aviation fuel to N940 and N980 per litre, respectively.

The development comes days after the refinery reduced diesel price to N1,000 per litre.

In a statement on Tuesday, the refinery said the price change of N940 is applicable to customers buying five million litres or more from the refinery, while those purchasing one million litres or more will pay N970.

According to the company, this marks the third major reduction in diesel price “in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre”.

Speaking on the new development, Anthony Chiejina, head of communication, Dangote Group, said the new price is in tandem with the company’s commitment to alleviating the effect of economic hardship in Nigeria.

“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri,” he said.

“You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”

He added that the partnership will be extended to other major oil marketers.

“The essence of this is to ensure that retail buyers do not buy at exorbitant prices,” he said.

“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce this new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.”

Reacting to the latest development, Ajayi Kadiri, director-general of the Manufacturers Association of Nigeria (MAN), said the decision “to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy”.

“The trickledown effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity,” Kadiri said.

He said the reduction will ease the high inflation rate in the country, and have far-reaching impact on critical sectors like industrial operations, transportation, logistics, and agriculture.

Kadiri added that companies will be back in operation due to the price reduction.

Business

FG to sell DisCos managed by AMCON, banks in next three months

Published

1 day ago

April 23, 2024 8:37 am

BodexNG

The federal government says it would sell off five electricity distribution companies (DisCos) under the management of banks and Asset Management Corporation of Nigeria (AMCON) in the next three months to technical power operators.

Adebayo Adelabu, minister of power, spoke in Abuja on Monday when the members of the senate committee on power visited the ministry.

The five DisCos include Abuja Electricity Distribution Company (AEDC), currently under the management of the United Bank for Africa (UBA); Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company, managed by Fidelity Bank, while Ibadan Electricity Distribution Company is under AMCON management.

The DisCos are under the management of the banks and AMCON due to their debt burden.

Adelabu said the energy distribution assets are technical and as such, they should be under the management of technical experts.

He also said the tough decision on the DisCos has become necessary because the entire Nigerian Electricity Supply Industry (NESI) fails when they refuse to perform.

According to Adebayo, the ministry will prevail on the Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.

“On distribution, very soon you will see that tough decisions will be taken on the DisCos. They are the last lap of the sector. If they don’t perform, the entire sector is not performing,” Adebayo said.

”The entire ministry is not performing. We have put pressure on NERC, which is their regulator to make sure they raise the bar on regulation activities.

”If they have to withdraw licenses for non-performance, why not? If they have to change the board of management, why not?

“And all the DisCos that are still under AMCON and Banks, within the next three months, must be sold to technical power operators with good reputations in utility management.

“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry and it must be run by technical experts.”

The minister further said it has become necessary to reorganise the DisCos for efficiency.

He stressed that Ibadan DisCo is too large for one company to manage.

FG TO REVOKE METRE CONTRACT FROM FIRM

Adelabu also dropped the hint that the federal government mobilised a company named Messr Zigglass with $200 million (N32 billion) to supply three million meters that were yet to be supplied to date.

“If you held N32 billion for these years, where is the interest,” he asked.

According to Adelabu, President Bola Tinubu directed that the contract be revoked.

He said the government will bridge the current eight million metering gap in the next four to five years.

The minister said the funding for the metre is coming from a seed capital of N100 billion and N75 billion.

He added that the Nigerian Sovereign Investment Authority (NISA) is coming to the aid of the ministry with the fund.

Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others