CBN Issues New Guide to Bank Charges
Finally, the Central Bank of Nigeria has issued a circular releasing a new set of guidelines for bank charges in Nigeria. This new set of guidelines, titled "The Revised Guide to Bank Charges" was issued March 27, 2013 and takes effect from April 1, 2013. The Guide to Bank Charges is usually briefly called the Bankers' Tariff.

The new Guide to Bank Charges replaces that issued December 23, 2003 aand which g=has been in effect since January 1, 2004. The new guide provides the standards for charges that Deposit Money Banks will apply to their various classes of customers (individuals, corporates, governments (Federal, State, Local and their parastatals), and non- governmental organizations) for their various products and services. Where a bank provides a product or service not covered by the Bankers' Tariff, it is mandated to present that to the CBN for prior approval.

If you hoped that the new Guide to Bank Charges will rein in on the free-running interest charges on loans, you might be disaapointed. Lending rates are generally stipulated as "Negotiable" in the new tariff, without any cap. With the majority of bank customers being small players without the muscle to negotiate favourable rates, the new guide on bank charges appears to leave the field open to banks to continue with the choking interest rates currently charged on loans.

Some relief is however seen in the capping of COT charges at N3 per mille in 2013, with further reductions in 2014 (N2 per mille), 2015 (N1 per mille) and full scrapping in 2016 (COT-free transactions).

Overall, the new bankers' tariff has sections covering the following charges:

• Intesrt on Deposits
• Ineterst Rates/Lending Fees
• Commission On Turnover
• Commission on Bonds, Guarantees & Indemnities, etc
• Foreign Exchange Comission
• Bills for Collection
• Straight Forward Handling of Documents
• Inward and Outward Letters of Credit
• Internal Transactions
• Electronic Banking
• Miscellaneous

To get all the details, download the new bankers' tariff here»

	Page Tools
	Send article to friend(s)
	Format for printing
	Comment on the article