Effective from last week Friday, January 1, 2016,
Nigerian banks are expected to charge nothing as
Commission on Turnover (CoT) according to the
gradual phase out plan of the Central Bank of
Nigeria (CBN). The CBN in April 2013 had revised
the guidelines on bank charges, introducing the
gradual phasing out of commission on turnover.
The revised guideline had introduced a gradual
reduction of CoT from N5 per mile (per N1000) in
early 2013 to N3 per mille or N1000, N2 per
N1000 in 2014 and is to be N1 per N1000 in 2015
and finally phased out effective January 1, 2016.
Although some banks had stopped charging CoT,
others still charge and in some cases above the
stipulated N1 per mille which it was last year.
Also for some banks, the amount charged as CoT
depends on the customers’ relationship and ability
to haggle with the bank.
Last year, the apex bank had ordered deposit
money banks to refund illegal fees charged
customers over a period of one year, giving them
30 days to refund the excess charges or face
severe penalties. Specifically, the central bank
said some banks had been overcharging
customers on the Commission on Turnover while
some lenders had also imposed illegal
maintenance fees on the CoT-free accounts.
Source: Leadership
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