A movement, named Money Deserves Better (MDBM), has called on Nigerian banks to reduce transaction charges and boost the return on investment value they remit to customers.

This comes after a report that showed that the first quarter of 2023, banks’ fees and commission income surged by 17.5 per cent, reaching N365 billion but despite the significant increase in banks’ revenue, the interest earned on high-interest savings accounts averages only 4-5 per cent annually.
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Member of the organisation, Bamise Lucas, “We advocate for improved rates and reduced charges, with the ultimate goal of encouraging more individuals to join this financial revolution,” he continued. “As part of our objectives, there is a call for the Central Bank of Nigeria (CBN) to consider reducing the Monetary Policy Rate (MPR). Such a move would have a positive impact on the interest rates offered by banks, making saving more lucrative for account holders.”

In addition to pushing for a drop in the MPR, the movement is also urging banks to increase the annual interest rates on savings accounts.

PRO, MDBM, Sarah Ola, said, “This step would incentivize more people to save their money in banks and see better returns on their investments.”

They are also pushing for a reduction in the costs associated with using electronic channels for transactions.

Ola, emphasising the increasing digitisation of financial activities, said “lower transaction charges would encourage more Nigerians to adopt digital methods of payment, thereby enhancing financial inclusion and efficiency.”

The movement also seeks to challenge a common misconception among Nigerians that major banks with well-known names automatically guarantee better returns and security for their money.

“Investors should explore alternatives, such as SEC (Securities and Exchange Commission) licensed organizations, the PRO said. “The SEC serves as the regulatory body overseeing financial market activities in Nigeria, ensuring transparency, fairness, and proper regulation.”
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