Five New Fees Chargeable in the Nigerian Financial Market

 Fees associated with financial transactions are what every customer will always want to get acquainted with within the Nigerian financial market space.

 

While a few customers of banks and financial services related firms are aware of some of these fees chargeable, some customers are in the dark as they are not aware of fees associated with that particular transaction or financial activity they are about to go into. 

 

In recent times within the Nigerian financial market, some fees had been cancelled while a few of these cancelled fees have been re-introduced in a new way.

 

Prominent among those re-introduced fees are the N1 per mille negotiable current account maintenance fee which is meant to take care of / perhaps replace the phased-out COT and the N65 ATM charge which replaced the old fee of N100 earlier removed.

 

Discussed below are five new fees chargeable within the financial market space.

 

 

1. Current Account Maintenance Fee:

The Central Bank of Nigeria issued a circular to all deposit money banks introducing a negotiable current account maintenance fee not exceeding N1.00 per mille charged in respect of all customer induced debit transactions.

 

The CBN cites that the charge will help banks cushion the effect of the declining oil prices at the international market and the operation of the of the treasury single account.

 

The introduction of the new maintenance fee is coming on the hills of the Zero COT policy which is expected to take effect from the year 2016 after its gradual phase by the CBN in 2013.

 

 

2. The N50 Stamp Duty per Transaction:

The CBN directed all DMBs to start charging N50 per transaction based on stamp duty acts with immediate effect. The charge is expected to be collected on behalf of the Federal Government in an effort to improve its non-oil revenue.

 

3. The Introduction of N100 e-DMMS Application fee:

The Securities & Exchange Commission in an effort to reduce the incidence of unclaimed dividend in the Nigerian Capital Market launched an e-dividend Mandate Management System T(e-DMMS) in conjunction with the CBN and NIBSS in July 2015.

 

At the initial stage, the new system was meant to be free but on 30th November 2015, the Securities & Exchange Commission issued a release to investors stating that they should register for e-dividend within 90 days after which the an application fee of N100 will take effect.

 

 

4. The Introduction of N65 ATM Withdrawal Charges:

The CBN re-introduced N65ATM withdrawal charge in 2014 after the third withdrawal on other banks ATMs rather than the bank where the account is domiciled.

 

The banks were charging N100 before the burden was transferred to them but the unintended consequence of the cancellation led to the re-introduction of the N65 charge.

 

5. NSE/CSCS Trade Alert:

The Nigerian Stock Exchange in 2014 introduced a new alert system called X-Alert. The X-Alert notification is being charged at a flat rate of N4 per transaction as against the scrapped system where 0.06 percent of every trade on the Exchange was charged as the cost of notification.

[Proshare]