NECA tells companies to negotiate account maintenance fee with banks

Nigeria Employers’ Consultative Association (NECA) has urged member companies to negotiate their current account maintenance fee with the commercial banks in order to avoid losing money to the banks.

Segun Oshinowo, the director general of the employer organisation who stated this in reference to the Central Bank of Nigeria’s (CBN) directive to this effect, expressed the concern about the likelihood of businesses losing revenue to commercial banks, through an un-negotiated current account maintenance fee, in contravention of the CBN on maintenance fee.

The CBN, It would be recalled, on March 27, 2013 released a ‘revised guide to bank charges’ in which it expressed the resolve to gradually phase out Commission on Turnover (COT) until it achieves a zero charge by 2016. But in a sudden twist to the policy thrust, the apex bank on January 29, 2016, granted a negotiable current account maintenance fee not exceeding one naira (N1) to the banks.

Speaking on the apex’s bank latest move on bank charges, Oshinowo said     “we have noted that many companies are yet to explore the window of negotiating the current account maintenance fee with their banks. The maximum rate of N1 is the ceiling and it is expected that clients would negotiate with their banks acceptable rates below the ceiling”.

The DG urged companies to approach their banks and insist on negotiating the rate downward as this is in line with the guideline of the CBN.