Multiple commercial banks see a rise in fees and commission income by 31 per cent to N384.8 billion in nine months of 2021, compared to the N292.4 earned during the same period last year.
The said banks are Guaranty Trust Bank Holding Company (GTCo), Access Bank, Zenith Bank, United Bank for Africa, Stanbic IBTC, Unity Bank, Union Bank, Fidelity Bank, Wema Bank, and Sterling Bank. Out of these 10 banks, Fidelity Bank had the highest percentage rise.
According to the data garnered by each bank, the rise in the period comprised of account maintenance fees, which rose by 30 per cent from N45.8bn to N59.65bn. Meanwhile, fees and commissions generated from electronic banking grew by 34 per cent from N108.8bn in last year to N145.9.
Shina Loremikan, Coordinator of the Campaign Against Impunity (CAI), commented the growth in fees and commission is due to the rise in the prices of goods and services in the country.
“The inflation rate is so high that the same thing you were doing last year with N40,000, you may need N51,000 to do it this year and some of these bills have to be paid into the banks,” Mr Loremikan said.
The CAI coordinator also explained how banks encouraged their users to use their service more for easier transactions. For every payment made through the bank system, they will rake up money as well, thus more profit. Although he is concerned the total cost for service might be as much as the payment itself.
