Banking in Nigeria continues to be frustrating for customers on a daily basis – at most bank branches, long queues of cus- tomers can be found demand- ing answers about excessive charges on their accounts. The ever-expanding list of charges, levied by banks to increase their profitability, are now pushing customers to decamp to fintechs which provide much cheaper services.

Complaints about excessive bank charges are not new – they go back years, but there has been little progress on lowering them. These bank charges include: current account maintenance fees, performance bond fees, advance payment guarantee fees, bills for col- lection against acceptance fees, as well as cash handling charges, stamp duty charges and more.

Industry statistics show that more than 400,000 customers lodged ‘arbi- trary charges’ complaints against their banks in the last six months, with less than 10% of the transactions reversed, leaving a large number of their customers disgruntled.

Many of the charges run contrary to the CBN’s Guide to charges by banks, other financial and non-bank financial institutions, which provides a basis for the applica- tion of charges on various products and services.

For instance, although a management fee is not applicable in the case of a re- structured facility, many banks apply the fee at every renewal. There are also fees that are negotiable, but the banks hardly allow customers to discuss costs and arrive at better pricing.

Research shows that many bank cus- tomers are switching to fintechs, mainly O’Pay, Moniepoint and PalmPay, for their transactions. Many of the fintechs are promising and implementing zero fees on transactions. Are the banks shooting themselves in the foot?

Access deepens footprint in East Africa

Access Bank recently announced the ac- quisition of Standard Chartered Tanzania’s consumer, private, and business banking division.

Standard Chartered has been decoupling its banking presence across sub-Saharan Africa, having sold its shareholding in subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone.

The bank says these exits became nec- essary in order to fund incremental invest- ment in its leading wealth management business.

Access Bank says of its new purchase: “This strategic move significantly expands our capacity to offer inclusive, digitally- driven financial services across Tanzania, East Africa, and beyond.”

CEO for Standard Chartered Tanzania, Herman Kasekende said: “This transition represents a pivotal moment for Standard Chartered as we refocus our efforts on our core strengths. Our priority throughout this process has been to ensure a seamless transition for our employees and clients, who are at the heart of everything we do.”

In May, Access Bank completed the ac- quisition of the National Bank of Kenya (NBK) from KCB Group, This marked the conclusion of a transaction that began in March 2024.

Roosevelt Ogbonna, MD / CEO of Access Bank Plc said: “Kenya stands at the heart of regional commerce, and with NBK now part of the Access Bank family, we are better positioned to leverage our combined strengths in public sector, corporate, retail, and digital banking to deliver high-impact banking solutions.”

Access Bank views this acquisition as a catalyst for financial expansion, bringing together NBK’s local exper- tise and Access Bank’s global network to create a more innovative and efficient banking ecosystem in Kenya.

Access Bank Plc operates under its par- ent company, Access Holdings Plc, a lead- ing financial conglomerate headquartered in Nigeria.

Over recent years, the institution has aggressively expanded its presence across Africa and international markets, and it now operates in over a dozen African countries, including Kenya, Ghana, Rwan- da, Mozambique, Zambia, and South Africa.

Additionally, Access Bank maintains operations in the UK, UAE, and has rep- resentative offices in China, Lebanon, and India, further solidifying its global bank- ing presence.

Access Holdings’ strategic investments, although capital-intensive, are already contributing to a more diversified earnings base and positioning the Group as a global player from Africa. n

Statistics show that more than 400,000 customers lodged ‘arbitrary charges’ complaints against their banks in the last six months, with less than 10% of the transactions reversed.

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