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Banks make N209bn from account maintenance fees in three months

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Nigerian banks earned a combined N209.18bn from account maintenance charges in the first quarter of 2026, representing a 14.07 per cent increase from the N183.37bn recorded in the corresponding period of 2025, an analysis of the unaudited financial statements of 11 listed lenders by The PUNCH has shown.

The review also showed that total fee and commission income rose to N984.47bn in Q1 2026 from N866.30bn in Q1 2025, indicating a 13.64 per cent year-on-year increase.

The figures, drawn from the results of 11 of the 13 banks listed on the Nigerian Exchange, exclude FCMB Group and Unity Bank, which had yet to publish their unaudited first-quarter financial statements.

Account maintenance fees are regulated charges applicable only to current accounts, according to the Central Bank of Nigeria’s Guide to Charges by Banks and Other Financial Institutions. The fee replaced the former Commission on Turnover and is intended to enable banks to recover the cost of operating active transactional accounts.

An analysis of the banks’ earnings showed that Zenith Bank generated the highest account maintenance income at N25.07bn, followed by Ecobank Transnational Incorporated with N118.06bn recorded under cash management and related fees, which serves as the closest disclosed equivalent. Access Holdings posted N16.68bn, Guaranty Trust Holding Company earned N15.12bn, while United Bank for Africa generated N13.26bn.

In terms of total fee and commission income, Ecobank led the pack with N237.80bn, followed by Access Holdings with N205.03bn, UBA with N124.07bn, First Holdco with N96.12bn and Zenith Bank with N84.79bn.

Among lenders that disclosed account maintenance income separately, GTCO recorded the fastest growth, with charges rising by 42.15 per cent from N10.63bn to N15.12bn.

Sterling Financial Holdings followed with a 38.31 per cent increase to N2.38bn, while Wema Bank’s account maintenance earnings rose by 31.30 per cent to N3bn. Zenith Bank posted a 30.81 per cent increase to N25.07bn and UBA recorded a 27.65 per cent rise to N13.26bn.

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For total fee and commission income, Zenith Bank recorded the strongest growth at 41.43 per cent, followed by Fidelity Bank at 39.70 per cent, Sterling Financial Holdings at 33.25 per cent, Stanbic IBTC Holdings at 30.37 per cent and First Holdco at 23.67 per cent.

However, not all lenders recorded growth in account maintenance income. Fidelity Bank’s earnings from the line declined by 2.52 per cent to N3.24bn from N3.33bn, while Stanbic IBTC’s account transaction fees, its closest equivalent to account maintenance charges, fell by 4.98 per cent to N1.91bn from N2.01bn.

The PUNCH also found mixed performance across other fee-generating lines.

Access Holdings grew fee and commission income by 17.5 per cent to N205.03bn, driven by credit-related fees, bills and letters of credit, and e-business income. Account maintenance income rose modestly by 4.1 per cent to N16.68bn.

Ecobank’s fee and commission income increased by 7.72 per cent to N237.80bn, supported by brokerage fees, portfolio management fees and cash management-related charges, which accounted for almost half of total fee income.

Fidelity Bank recorded a 39.7 per cent increase in fee and commission income to N33.28bn, largely driven by ATM charges, Fidelity Connect commissions and letters of credit fees. Account maintenance charges declined despite the strong overall growth.

First Holdco grew fee and commission income by 23.67 per cent to N96.12bn, with strong contributions from credit-related fees, brokerage income, custodian fees and financial advisory services. Account maintenance charges rose by 17.38 per cent to N10.46bn.

GTCO increased fee and commission income by 7.09 per cent to N80.31bn, supported by strong growth in e-business income, credit-related fees and asset management fees. Account maintenance charges contributed 18.82 per cent of total fee income.

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Jaiz Bank recorded a 10.29 per cent increase in fee and commission revenue to N5.67bn, although it did not separately disclose account maintenance charges.

Stanbic IBTC expanded fee and commission revenue by 30.37 per cent to N83.14bn, driven by asset management, brokerage, custody and foreign currency service fees. Its account transaction fees declined by 4.98 per cent.

Sterling Financial Holdings posted a 33.25 per cent increase in fee and commission income to N16.88bn. Account maintenance fees rose by 38.31 per cent to N2.38bn, while other fees and commissions surged by 139.32 per cent.

UBA’s fee and commission income declined by 3.04 per cent to N124.07bn as lower earnings from credit-related fees, remittance fees and transactional service commissions offset gains from account maintenance charges and pension custody fees. Account maintenance income rose by 27.65 per cent.

Wema Bank’s fee and commission income fell by 30.57 per cent to N17.39bn due mainly to declines in electronic product fees, financial guarantees and foreign exchange transaction charges. However, account maintenance income increased by 31.3 per cent.

Zenith Bank recorded a 41.43 per cent increase in fee and commission income to N84.79bn. Account maintenance charges, which represented 29.57 per cent of total fee income, rose by 30.81 per cent to N25.07bn. Strong growth in foreign withdrawal charges, electronic product fees and letters of credit commissions supported performance.

Commenting on the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the increase in banking transactions and fee income reflected improving economic activity and rising confidence in the formal sector.

Yusuf said, “If the momentum of economic activities is growing, it reflects in the performance of the banks, particularly when we look at activities within the formal sector of the economy. The demand for banking activities is a derived demand because the demand for banking activities is in order to support economic activities.

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“So if you are seeing growth in the economy, if you are seeing an improvement in business confidence in the economy, if you are seeing profitability of businesses, there is a positive correlation between what the economy is saying and what business performance is saying. All of these things are reflected in the transactions in the banks, which ultimately also reflects in the profitability of the financial institutions.”

The CPPE chief observed that there is a strong correlation between the tempo of economic activities and banking transactions and profitability.

“It is a reflection of the momentum that we are seeing in terms of economic recovery, business confidence, investors’ confidence and macroeconomic stability supporting business growth,” he concluded.

The growth in banking fees coincides with signs of strengthening economic activity. Nigeria’s private sector expanded to a nine-month high in May 2026, with the Stanbic IBTC Purchasing Managers’ Index rising to 54.1 points, supported by stronger demand, increased output, new product launches and improved logistics.

The banking sector has also continued to benefit from ongoing reforms. Earlier this year, the Central Bank of Nigeria said its financial-sector reforms, including the recapitalisation programme, were strengthening the foundations of the economy.

According to the apex bank, 33 banks had raised additional capital as of March 2026, while 30 institutions had already met the new minimum capital requirements for their licence categories.

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Read how Nigerians tap savings, loans to buy Dangote refinery shares

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Some Nigerians seeking to invest in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering have turned to personal savings, loans and proceeds from the sale of assets to raise funds to buy shares, Saturday PUNCH has learnt.

Findings by our correspondents revealed strong interest in the shares among prospective retail investors, some of whom said they expected the investment to yield substantial returns in the future.

While some respondents said they were dipping into savings or raising funds through other means, others said the prevailing economic hardship had made it difficult for them to participate in the offer.

The refinery opened its IPO on Monday, September 14, giving Nigerians an opportunity to own equity in the company.

The offer comprises 4.1 billion ordinary shares priced at N525 each, with the company targeting about N2.15tn to part-fund an expansion that would nearly double the refinery’s capacity to 1.4 million barrels per day.

The minimum subscription is 10 shares, costing N5,250.

Dangote Group Chief Executive Officer, Aliko Dangote, said the low entry threshold was deliberately set to allow ordinary workers, including drivers, cooks and domestic staff, to become shareholders, describing the offer as “the IPO for the people.”

The offer is expected to close on October 13.

Investors turn to savings, loans

A staff member of the Federal Ministry of Works, David Adelabu, described the shares as expensive for struggling civil servants but said he considered the offer an opportunity to become a shareholder in the refinery.

He said, “I have small shares in some companies, including Glo and MTN, but Dangote’s shares will be the highest I will be buying. It is on the high side, but I feel this is an opportunity to become a shareholder in Dangote.

“I understand that the dividends are not going to be immediate, but I don’t mind even if it will entail selling a plot of land I have in Metumbi here in Minna. I will gladly do so.”

A trader in Dutse, Jigawa State, Adamu Bala, said he planned to use savings from his business to buy the shares.

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“I will not sell my house. I will use a small profit from my shop to buy,” he said.

Similarly, a civil servant, Fatima Mannir, said women in her group had started raising money through contributions, known as adashe, to participate in the offer.

“We have started raising money through adashe,” she said.

A trader in Damaturu, Yobe State, Malam Musa Ibrahim, said he invested part of his business savings after learning about the offer.

“I am using part of the money I have saved from my business.

“I believe that if I can invest a small amount now, it may become useful to me in the future. But I am also being careful because business is not easy at the moment,” he said.

Another resident, Aisha Mohammed, said she raised money by cutting down on some household expenses.

“I did not borrow money to buy the shares. I have been saving little by little, and when I heard about the offer, I decided to use part of what I had saved,” she said.

A businessman, Abdullahi Yusuf, however, said he obtained financial assistance from a friend to increase his subscription.

“I wanted to buy more shares than what my savings could afford, so I discussed it with a friend who agreed to lend me some money.

“I know that borrowing money to invest carries risks, but I am hoping that the investment will perform well. I will repay the money from my business income,” he said.

A petty trader, Hauwa Lawan, said she sold some personal belongings she no longer used and added the proceeds to her savings to finance her purchase.

“I sold some things that I was no longer using and added the money to my savings,” she said.

A farmer, Mallam Abdullahi Adamu, said he sold farm produce to raise about N500,000 to invest in the shares.

In Kano State, an investor, Abdulmalik Ibrahim, said he bought 10 shares for N5,250 using personal funds.

Hardship keeps some investors away

While some Nigerians are finding ways to participate in the IPO, others said economic pressures had put the investment beyond their reach.

See also  Dangote refinery slashes petrol gantry price by N75/litre; read details

A civil servant in Kogi State, Saliu Joseph, said he would have loved to invest but had just paid his children’s school fees.

“Right now, I don’t think I can afford to participate unless a miracle happens,” he said.

A retired permanent secretary in the state, Bola Boro, also said he would not participate because he could not afford the investment at the moment.

“As a retired civil servant, I cannot afford such an amount to invest in the offer. Even though I am a fan of investment through the stock market, which I have been doing for years, I don’t think it will be convenient for me to participate considering the time frame of just one month,” he said.

A civil servant, Kuta Abdulahi, said the financial demands of his children’s education had left him unable to participate in the share offer.

“I must tell you the truth, I know about the Dangote Refinery shares, but I cannot even think of it at this time. My children are just resuming a new term in school. Where will I get the money for their school fees before thinking of buying shares? Please, I have a lot on my head,” he said.

Similarly, a vulcaniser, Ahmed Alkali, said his income was barely enough to meet his family’s basic needs, making investment in shares difficult.

“With the kind of job I do, I am working from hand to mouth. So, how can I buy shares when I have not eaten?” he asked.

Experts warn against borrowing

Investment experts, however, cautioned Nigerians against taking loans, selling properties or committing all their savings to the IPO, warning that equity investments carry risks.

Speaking with Saturday PUNCH, the Group Managing Director of Lancelot Group, Adebayo Adeleke, urged prospective investors to understand the risks associated with the capital market before committing their funds to the IPO.

Adeleke, who is also a former Secretary of the Independent Shareholders Association of Nigeria, said capital market investments should be made with funds that investors could afford to leave untouched for the long term, noting that equities were unsuitable for people struggling to meet immediate financial needs.

He said, “When you buy shares, you are buying a portion of the ownership of the business. Investment takes a lot of time to pass through gestation, to stability, to profitability. And you cannot, with any degree of certainty, predict when the company is going to turn the corner and begin to produce profits.

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“So, investment money is not the money you are likely to need in the next two months, three months, six months, even one year. If you cannot part with your money for a minimum of three to five years, the capital market is not the place to invest.”

Adeleke, however, described the IPO as a strategic investment, citing the refinery’s scale and demand for its products.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, urged Nigerians to consider the risks associated with the investment and avoid committing all their savings to the offer.

He said, “There are plenty of risks to this business. It’s not risk-free. Things can get worse for the business. Valuation is based on expectations of what will happen in the future. Things might not go as planned. And, like we all know, equity is a risky business.”

Olubunmi particularly cautioned prospective investors against selling property or using up all their savings to invest in the offer.

He advised them to invest only a portion of their funds and diversify their portfolios.

The expert also advised those considering taking loans to buy the shares to have a separate and reliable repayment plan rather than depending on returns from the investment.

The Emir of Kano, Muhammadu Sanusi II, had earlier warned prospective investors against using their children’s school fees or selling their homes to invest in the shares.

Sanusi, who gave the warning on Thursday while speaking at the company’s roadshow in Kano, urged prospective investors to invest only money they could afford to set aside for some time, suggesting amounts such as N10,000, N20,000 or N30,000.

Source: punchng.com

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

See also  Dangote names N739 as new petrol pump price

🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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