CBN REINTRODUCES COT TO CURRENT ACCOUNT, SAYS ITS MAINTENANCE FEE

The Central Bank of Nigeria (CBN) has indirectly reintroduced Commission on Turnover (CoT) fee as Current Account Maintenance (CAM) Fee. Recall that the CBN in 2013 commenced phased reduction of CoT which terminated with zero CoT charge this year. But in a circular to banks
last week signed by Director, Financial Policy & Regulation Department,  Mr. Kevin Amugo,  the CBN replaced the CoT with CAT but subject to maximum of N1 per N1000 (Mille).

“In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 Zero COT regime as jointly agreed during the 311th Bankers Committee meeting of February 12, 2013 has come into effect. In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer induced debit transactions. Please ensure strict compliance”.