UBA shifts implementation of N25,000 minimum balance
Lagos — Unions in the banking and financial institutions yesterday said in Lagos that the N25,000 minimum account balance being touted by some banks would discourage savings.

They have, therefore, advised the banks to grade their saving system so as to encourage more Nigerians to save instead of fixing high minimum balance.

The advice was given by the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and the National Union of Banks, Insurance and Financial Institution Employees (NUBIFIE).

The two unions were reacting to directive by the United Bank for Africa (UBA) Plc that individual customers must leave a minimum balance of N25, 000 in their accounts.

The News Agency of Nigeria (NAN) reports that the policy, though not a directive from the Central Bank of Nigeria (CBN) took effect in UBA branches from July 1.

ASSBIFI President, Mr Olusoji Salako told NAN in Lagos that the N25, 000 minimum account balances for individual customers would discourage savings.

“I think the money is too much. The banks will not be encouraging individual savings if that policy is sustained. How much does the average Nigerian earn as monthly income?

“I suggest that the banks should maintain N5,000 as minimum account balance for an individual while corporate account should be N25, 000,” Salako said.

Salako, however, said that the policy was for the banks to find ways to retain money for their businesses following the ongoing reform by the Central Bank of Nigeria (CBN).

“The banks too have to pay for some administrative works. How will they do their internet banking and pay for some of their cost. People should consider their plight,” the union president said.

He explained that if the policy grouped minimum account balance into categories of customers, it would give many people the opportunity to continue to save.

Mr Ade Martins, NUBIFIE President, said the N25,000 minimum account balance was a worrisome development because many Nigerians were not salary earners.

“How many Nigerians can afford to save N10, 000 in their account much less N25,000. Many people are not salary earners because of the economy,” he said.

The unionist, however, said that there was need to implement the N25, 000 minimum account balance policy with some category of account holders but definitely not applicable to everybody.

He said it was regrettable that the reform by the CBN was causing the banking sector to take decisions that were anti-people.

Martins appealed to the apex bank to carry out reforms and policies that would impact positively on the economy and the people.

UBA shifts implementation of N25,000 minimum balance

Abuja—The United Bank for Africa , UBA Plc, will, from September, peg the minimum balance for savings and current accounts to N25, 000, an employee of the bank confirmed in Abuja yesterday.

A staff of the bank  who spoke to the News Agency of Nigeria (NAN) on condition of anonymity, said the idea was aimed at decongesting the banking hall.

He said that the bank was supposed to start the implementation on July 1 but postponed it to enable it to effectively educate customers and allow them to grow their accounts to fit into the policy. “We are supposed to start it today because a memo had already been passed for it only for us to come this morning to get an instruction that it has been postponed.”

The source added that the idea was as a result of the Central Bank of Nigeria‘s order for banks to be stabilised and support the cashless economy policy.

The source said many customers had complained about the decision and described it as discouraging.
“The management has decided and concluded on it but what they told us for now is that they will continue to finetune it.

“They said that the salaries and student accounts will not be affected; that it is accounts of business people, like market women, okada riders and all others  that will be used for it now,” he said .

Meanwhile, some customers, who spoke at UBA’s branch in Area 8, said that the decision to peg the minimum account balance at N25, 000 was not good.

Mrs Edet Akpa, a market woman said “ I really don’t understand what they are saying but it will not be fair for them to do such a thing.

“ N25, 000, is too much when one is in need of money that minimum balance can go a long way to help.

“At least N5, 000, would have been better since it used to be N1,000 before,” She said.
Also, Mr Johnson Edmund, a businessman, said that for big businessmen, the money will not mean anything.

“My fear is that with all these policies coming up and down, people will prefer to keep their money at home and save themselves of the stress.

“The Central Bank should think well so that we don’t encourage armed robberies at homes, we have moved away from it for some years now.

“This idea now may discourage saving culture that we are trying to build up in this country,” he said
Ms Agnes Udoh, a civil servant, said that banks should not support the policy but try to defend their customers more.

“Everyday Central Bank gives instruction and banks don’t even think about their customers before implementation.
“I am happy that they said that salary and students accounts are not involved,” she said