Lagos – Some financial experts have commended the Central Bank of Nigeria (CBN) for its initiatives to stop banks' Commission on Transaction (COT).
They gave the commendations in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Monday.
The financial experts were of the opinion that such intervention would encourage people to bring more deposits into the banking system.
NAN recalls that Mr Tunde Lemo, the Deputy Governor in charge of operations, announced the proposed intervention while speaking at the first annual Lagos Business Conference on March 19.
"COT will disappear in the next two to three years,'' Lemo had said at the conference.
Mr Eddie Osarenkhoe, immediate past President, Finance Houses Association of Nigeria (FHAN), described the move as "a good thought''.
According to him, the initiative would encourage more people to open current accounts.
"The policy will enhance competitiveness in the financial system since banks will device means of attracting more customers,'' he said.
Osarenkhoe said that the initiative would make people to bring money kept in their pillow to the banks, adding that the proposal was another way to achieve the objective of the cash less policy.
Mr Olumide Adegoke, the General Manager of Standard Alliance Insurance, advised the apex bank to implement the policy without delay.
He said that COT was unnecessary as it was discouraging customers.
Adegoke said that the proposal was part of the regulatory and supervisory framework of the CBN to look into the banks' operations and ensure sanity in the sector.
The manager said that the policy would not affect banks' profit margins, noting that some banks were not charging COT, but were still declaring huge profits.
He advised the Federal Government to create enabling environment for businesses so that money spent by banks to provide stable power supply and security could be reduced.
Mr Kunle Ajayi, Funds Manager, Cash Craft Assets Management Ltd., also said that the policy would help to attract more deposits to the banks.
He said that it would help the cash less policy, adding that more people would embrace the use of banks for their transactions.
According to him, more than 50 per cent of the population does not use banks, adding that some people prefer to keep their money at home due to additional charges banks imposed on customers.
"Some people see the COT and other charges like the Short Messaging Service (SMS) as a way of short-changing them,'' he said. (NAN)
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