An economist, Dr. Augustine Kutu, has called on the Federal Government, the Central Bank of Nigeria (CBN), and policymakers to address public concerns over the recent charges on bank transactions.Kutu, an Assistant Professor at the University of Western Ontario, Canada, made this appeal in an interview with the journalist in Abuja.
He acknowledged that while many Nigerians view the charges as a strain on their purchasing power and savings, banks argue that the fees are necessary to cover operational costs and drive economic growth.
“As part of its monetary policy framework, the CBN regulates bank charges and deductions, including those on cash transactions and account maintenance. These charges vary across banks depending on the type of transaction,” Kutu explained.
He added that the reintroduction of charges on certain cash deposits and withdrawals was intended to modernize the payment system and reduce the economy’s reliance on cash transactions, which are costly and hinder development.
However, Kutu highlighted the challenges affecting the policy’s effectiveness, particularly security risks associated with electronic payments, unreliable infrastructure, and limited access to digital services in rural areas.
“Cyber threats, data breaches, and inadequate internet and power supply continue to limit the widespread adoption of digital payment methods,” he noted.
He also pointed out that low digital literacy and the recent 50% increase in telecom tariffs may discourage Nigerians from embracing the new policy.
To ease financial burdens on customers and encourage adoption, Kutu advised the CBN to consider revising Automated Teller Machine (ATM), Point of Sale (POS), and interbank transaction fees.
“Expanding access to ATMs and POS terminals, especially in rural areas, is crucial for financial inclusion,” he added.
Kutu further urged the government to strengthen Information and Communication Technology (ICT) infrastructure in underserved areas to bridge the digital divide and enhance access to financial services.
(NAN)