By Michael Owhoko, PhD

The astronomical rise in banks’ profits as reflected in the 2024 full year financial report has exposed the banking industry as a lucrative enterprise powered by arbitrary charges imposed on unwilling customers. In some cases, these inexplicable fees and other unholy electronic deductions, leave customers to reel on the throes of pains, with impact on their blood.

That the Central Bank of Nigeria (CBN) has been penalizing the banks for flouting stipulated guidelines as contained in its Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions is a confirmation that these banks deliberately use arbitrary and excessive charges to fleece customers, obviously to boost profitability.

Since these painful charges constitute part of the big profits made by banks at the expense of customers, they are likened to blood profits.  Like blood money, which is obtained at the expense of another’s man’s life, blood profits are earnings gained by banks at the cost of customers’ blood.

In context, blood here refers to the sweat, sacrifice, pains, frustration and helplessness customers go through when deductions veiled in hidden and arbitrary charges are made on their accounts.In other words, bank earnings are tantamount to blood profits when viewed against the backdrop of resultant pains suffered by helpless customers who bear the brunt of arbitrary charges.

These charges are embedded in crazy debits alerts sent through SMS notifications and emails, and sometimes,they are delivered incoherently, in arrears or at odd hours, perhaps,to shield or distract customers from scrutinizing the alerts.  Besides causing general body imbalance, the charges also trigger mood swings and countenance upset among customers, once received.

Some of these crazy charges include, but not limited to commission on turnover, withdrawal fees, transfer charges, electronic money transfer, processing fees, VAT charges, ATM fees, debit or credit cards issuance, replacement or renewal fees, account maintenance fees, NIP transfer charges, SMS alert charges, stamp duty fees, interest charges, SMS VAT charges, hardware token charges, cybersecurity levy, bills payment fees, and other random levies.

Besides, the CBN’s recent introduction of on-site and off-site charges during cash withdrawals at ATM machines,is also unhelpful and inimical to current plight of bank customers, who are now compelled to pay withdrawal fees for use of ATM machines owned by banks other than theirs.  But where such transactions are carried out in customers’ own banks, such transactions attract no charges.  This introduction is coming on the heels of a fresh increase of SMS alerts charges from N4 to N6 per transaction, further compounding the woes of customers.

Implicitly, these charges constitute huge burden on the average bank customer who contends daily with depletion in his or her account balances.  Corporate customers or businesses are also not spared from these questionable charges that have become a drain on the balance-sheet of companies.

With about 312 million active accounts bank-wide as at December 2024, these irrational charges have contributed immensely to the bottom line, occupying a larger space in the profit basket of banks, dislodging loans and foreign exchange sources of profits, which have diminished overtime by high-interest rate regime and prevailing foreign exchange dynamics.

For example, from the 2024 financial year report of just five of the tier 1 banks, the profit growth rose enormously with pre-tax profit hitting N4.56 trillion, approximately 69.5 percent increase compared to N2.69 trillion declared in 2023, while their net profit after tax rose by 66.2 percent in 2024, amounting to N3.78 trillion, as against N2.27 trillion recorded in 2023.

These five tier 1 banks, whose total combined assets in 2024 reached N108.21 trillion, from just N72.80 trillion recorded in 2023, include First Holdco Plc, GTCO Plc, Zenith Bank Plc, UBA Plc,and Stanbic IBTC Holdings Plc.

Specifically, First Holdco grew its profit before tax to N862.39 billion in 2024 from N356.15 recorded in 2023, just as its profit after tax rose to N736.7 billion in 2024 from N308.4 billion it earned in 2023. GTCO on the other hand, grew its pre-tax profit from N609.3 billion in 2023 to N1.27 trillion in 2024, with its net profit rising to N1.02 trillion in 2024 from N529.66 billion made in 2023.

Also, Zenith Bank grew its profit before tax to N1.33 trillion in 2024 from N795.96 billion recorded in 2023, just as its profit after tax rose from N676.9 billion in 2023 to N1.03 trillion in 2024. Similarly, UBA grew its pre-tax profit to N803.72 billion in 2024 from N757.68 billion it recorded in 2023, with its net profit increased from N607.7 billion in 2023 to N766.6 billion in 2024.

In the same vein, Stanbic IBTC Holdings reported a profit before tax of N303.8 billion in 2024 from N172.91 billion it made in 2023.  Its profit after tax rose to N225.3 billion in 2024, compared to N140.62 it recorded in 2023.

With charges as sources of cheap revenue, banks are no longer motivated to embark on constructive and creative efforts in their quest for profit generation.  Profits gained from matching of deposit funds against credit lendingin consonant with traditional banking, are now waning.  Perhaps, this explains the drop in number of banks’ female employees deployed to chase depositors for cheap funds.

Though, lacking ingenuity and industry,use of charges as sources ofcheap profits, can make the ordinary businessman to be envious of bank owners.  Even Aliko Dangote, as the richest man in Africa, perhaps, may be regretting for allowing his bank, Liberty Merchant Bank, to go under, just like previous bank owners whose banks have closed shop.  Their banks might have been sources of value addition to their wealth.

Regrettably, rather than portray the banks in positive light, these colossal profits shunned out by Nigerian banks, are stirring negative public perception about their operational methods, believed generally to be unhelpful to individual and business ventures, particularly, small and medium business enterprises.

The Federal Government and CBN are complicit in this unjustifiable charges and levies.  Reason: the Federal Government recently received approximately N84.05 billion from Electronic Money Transfer Levy alone in the first quarter of this year, 2025.  This is unhealthy, and a nightmare for the average Nigerian bank customer, who sees it as sheer extortion.

Since the government is a direct beneficiary of these charges, CBN may have been reluctant to  exercise strict and regular oversight over the banks on compliance with its guidelines.  And this may have unwittingly,encouraged the banks to thrive in unbridled manner, particularly, in “under the table transactions.”  These boom and windfall profits would have been near impossible under a sane financial environment typified by global best banking practices.

So, while the banks jubilate for a job well done for full year 2024 financial reports, the real sector and individual customers for which the banks were established to support, groan and suffocate in pains due to business decline and losses suffered, including, in some cases, complete closure of operations and insolvency.

Put differently, the banking system has become a pain in the neck of customers.  While customers are experiencing frustrations from incessant debit alerts attributable to subjective and jumbled charges, corporate customers, in addition,also suffer from inability to access simple credits to run businesses,including foreign exchange to settle Letters of Credit.

It is therefore imperative to compel the banks to function appropriately without putting the customers through pains.  Gaps created by CBN’s unimpressive efforts at enforcing compliance with rules guiding bank charges, should be filled by various consumer protection agencies for the good of customers.

The Federal Competition and Consumer Protection Commission (FCCPC) and other non-governmental organisations (NGOs) established to protect the interest of consumers should rise to the challenge of banks’growing quest for abnormal profit through use of arbitrary charges,devoid of empathy for emotional state of customers.

Some of the policies that necessitated the bank charges should be reviewed,so as not to discourage Nigerians from optimizing the services of the banking industry.  Failure to do this, could undermine government’s cashless policy, with implication on banks’ total clientele base.  Moreso, as the country is still underbanked.

The banks must therefore, wake up,smell the coffee,feel the impulse of customers, and shore up the dwindling integrity and reputation of the banking industry.

Dr. Mike Owhoko, Lagos-based public policy analyst, author, and journalist, can be reached at www.mikeowhoko.com, and followed on X {formerly Twitter} @michaelowhoko.

By Abba Dukawa

Despite political scepticism from opposition politicians, Governor Mai Mala Buni has proven his commitment to serving Yobe State’s people, prioritizing their needs over personal interests since taking office. His political vision aligns with the masses’, focusing on their welfare and well-being.

Notwithstanding the challenges, Governor Mai Mala Buni remains committed to Yobe State’s, focusing on state and citizens’ needs despite obstacles

Since taking office, Governor Mai Mala Buni’s administration has made significant strides in various sectors, including infrastructure development, healthcare, education, road construction, agriculture, and women and youth empowerment. Notably, the administration has offered local and foreign scholarships, boosting citizens’ confidence in the state.”

Despite insurgency and insecurity challenges in the state, Governor Mai Mala Buni has made concerted efforts to combat insecurity. Notably, he has engaged with Service Chiefs and Heads of Security Agencies to find lasting solutions, ensuring peace and security across the state. Over the past six years, the Yobe State government has provided over 400 vehicles to support the Nigerian Army, Air Force, Police, and other security agencies, enhancing their operational capabilities.

Under Governor Mai Mala Buni’s leadership, Yobe State has made significant strides in transforming education. To address the pressing issue of out-of-school children, he convened the state’s inaugural education summit, seeking solutions. With approximately 4.4 million out-of-school children residing in Yobe (about a third of Nigeria’s 13.2 million), the summit marked a crucial milestone in the administration’s efforts to revamp the education sector.

To expand access to education, the administration established model primary and junior secondary schools in each of the state’s three senatorial districts, with plans for further expansion to all 17 local government areas. This initiative has yielded significant results, including increased school enrollment and the rehabilitation of structures damaged by Boko Haram insurgents.

Furthermore, Governor Buni’s administration has established six new Model Schools, seven Mega Schools, nine Government Girls’ Day Senior Secondary Schools, eight co-educational Government Day Senior Secondary Schools, one additional boys’ school, and an IDP School in Buni-Yadi.” These initiatives were complemented by the construction of new classrooms, laboratories, ICT centers, hostels, and other essential facilities, as well as the provision of teaching and learning materials to primary, secondary, and tertiary institutions, fostering a conducive learning environment for students and pupils. These new schools are strategically located in affected areas, aligning with the administration’s State of Emergency Declaration on Education initiative.” The administration has also awarded scholarships to hundreds of high-achieving students, both male and female, to pursue various fields, including Petro-Engineering, Medicine, Anesthesia, and Pharmacy, locally and internationally.

Yobe State’s health sector has seen significant achievements, the state government has constructed, refurbished, and equipped over 138 Primary Health Care centers, increasing access to essential services. Free Dialysis Program*: hundreds patients receive free dialysis treatment every month at the Yobe State University Teaching Hospital.

Yobe State was recognized as a leader in primary healthcare, winning $500,000 in the North-East sub-region leadership challenge.The state allocated 15% of its 2025 budget to the health sector, to promote healthcare delivery services.  The state has upgraded four general hospitals to specialist facilities and eight Primary Health Care centers to general hospitals, enhancing healthcare infrastructure.

The Buni Expanded Free Healthcare Scheme provides free basic healthcare to vulnerable populations, including pregnant women, children under five, and people living with disabilities. More than hundred thousands residents have been enrolled in the scheme, with 222 primary healthcare providers and 24 secondary healthcare facilities supported through capitation and fee-for-service arrangements. Yobe State University Teaching Hospital has secured full accreditation to train 25 resident doctors, a monumental achievement for the state’s healthcare sector.

Since 2019, the state has witnessed unprecedented infrastructural development under the current administration.  Yobe State’s infrastructure development under Governor Mai Mala Buni’s administration has seen significant progress in various sectors. Construction and rehabilitation of over 500 kilometers of roads, connecting communities and fostering economic growth  complete  road projects. Township roads and drainages in five local government areas. Damaturu flyover construction.

Commissioning of new electricity infrastructure for the Nguru Mass Housing Estate, Expansion of the National Grid to more communities.  Installation of solar streetlights in 11 local government areas. Mass Housing Policy delivering 2,350 housing units with basic amenities at a 50% discount on an owner-occupier basis. Improved water supply with new solar-powered boreholes and reticulations in Damaturu, Buni-Yadi, Nguru, Geidam, and Potiskum. Construction of modern markets in Potiskum, Geidam, Yunusari, and Ngalda,  Damaturu Mega Shopping Mall construction and Potiskum Truck Transit Park development. These infrastructure developments aim to drive economic growth, enhance the quality of life for residents, and support the state’s overall progress

Despite financial constraints, Governor Buni’s administration has successfully implemented developmental projects that enhance human capital development. To achieve its socioeconomic objectives, the administration is proactively seeking local and international investments to leverage the state’s natural mineral resources. Notably, Governor Buni has engaged with Qatari investors to explore opportunities for establishing a cement company and meat processing factory in Yobe State.

The administration has revitalized and upgraded government-owned industries, including the Gujba Fertiliser Blending Plant, Polythene, Woven Sacks Factory, Yobe Flour and Feed Mills, and Sahel Aluminium Companies, to enhance production capacity. This initiative seeks to boost internal revenue generation and create jobs.

To realize its vision for Yobe State, the administration has introduced transformative policies and programs designed to unlock the state’s vast potential and propel it towards greatness. Building on the substantial progress achieved over the past six years, Governor Mai Mala Buni has consistently prioritized the welfare of the people, eschewing political expediency and personal interests for the greater good.

As Chairman of the APC’s Caretaker/Extraordinary Convention Planning Committee, Governor Mai Mala Buni spearheaded the party’s transformation, bridging internal rifts and rebranding it to appeal to a wider demographic. Under his leadership, the APC has attracted notable defections, including governors from Zamfara, Ebonyi, and Cross River states, as well as prominent figures such as Gbenga Daniel, Lt. Gen. Ihejirika, Yakubu Dogara, Dimeji Bankole, and Barnabas Gemade. Governor Buni’s people-centric approach has earned him recognition as a diligent and empathetic leader. His administration’s commitment to enhancing citizens’ lives reflects his sense of duty and selflessness.

Dukawa writes in from Kano and can be reached at abbahydukawa@gmail.com

By Alex Oware

President Bola Tinubu has firmly established Nigeria as a proactive and visionary leader in the global pursuit of climate action and sustainable development. Recognising that environmental stewardship is intrinsically linked to economic prosperity, his administration has moved beyond viewing climate change as a mere ecological concern, positioning it instead as a pivotal economic opportunity ripe for exploration and investment.

President Tinubu’s emphatic pronouncements at the 2025 Abu Dhabi Sustainability Week and during a high-level virtual dialogue underscored Nigeria’s unwavering commitment to international collaboration, emphasising the critical need for a unified global response to the escalating climate crisis. He astutely highlighted that the realisation of a truly sustainable future necessitates robust global interconnectedness and a shared sense of responsibility amongst all nations.

Nigeria’s comprehensive strategy for tackling the multifaceted challenges of climate change rests upon three fundamental pillars: a decisive shift towards clean energy transition, the building of robust climate resilience, and an overarching commitment to sustainable development. To translate these core principles into tangible realities, the current administration is actively implementing a range of key initiatives designed to wean the nation off its reliance on traditional fossil fuels.

A significant aspect of this endeavor involves the substantial expansion of infrastructure to support the widespread adoption of Compressed Natural Gas (CNG) and electric vehicles. Simultaneously, the government is strategically focusing on harnessing Nigeria’s abundant solid mineral resources to provide crucial materials for the burgeoning green energy sector.

Complementing these efforts are the implementation of climate-smart agricultural practices, aimed at simultaneously enhancing national food security and minimising detrimental environmental impacts.

Furthermore, the newly introduced National Clean Cooking Policy seeks to promote clean energy solutions at the household level, promising significant environmental, health, and socio-economic benefits for Nigerian citizens.

These ambitious endeavors are meticulously designed to deliver palpable value and positive impact directly to the lives of Nigerians. The diversification of energy sources holds the promise of cleaner air and a significantly healthier environment for communities across the nation.

The active promotion of CNG as a viable alternative fuel is strategically aimed at mitigating the economic and social hardships that have arisen from the removal of fuel subsidies, offering a more affordable and sustainable energy option for transportation and domestic use. The widespread adoption of climate-smart agriculture is paramount for bolstering food security, ensuring a stable and reliable food supply, and safeguarding vulnerable local communities from the increasingly severe adverse effects of climate change, such as droughts and floods.

Moreover, the deliberate expansion of the green energy sector is projected to generate a wealth of new employment opportunities and empower local entrepreneurs, particularly in rural communities that are gaining access to reliable and sustainable electricity for the first time.

In a demonstrably bold move that underscores the administration’s commitment to these overarching goals, President Tinubu’s government has put forward a significant N10 billion solar power project specifically for the Aso Rock Presidential Villa. This ambitious initiative is presented as a crucial step towards establishing a more sustainable and dependable energy future for the entire nation, starting from the highest levels of governance.

Proponents of the project persuasively argue that it aligns seamlessly with global best practices, drawing parallels with the increasing adoption of solar energy in key government institutions worldwide. The Energy Commission of Nigeria (ECN) has vigorously defended the project, asserting that it is fully in line with President Tinubu’s broader reforms aimed at fundamentally transforming Nigeria’s energy landscape and decisively tackling the persistent and crippling energy debt crisis.

The ECN further emphasises that solar energy offers inherent efficiency, provides a crucial shield for Nigerians against the volatility of rising tariffs on conventional energy sources, and has the potential to significantly ease the immense pressure currently burdening the national electricity grid.

While the project has understandably sparked public debate and scrutiny regarding its substantial cost and prioritisation in the face of other pressing national needs, the government strategically positions it as an innovative approach that demonstrates leadership by example and a profound commitment to integrating clean energy solutions at the very apex of Nigerian governance.

Beyond these crucial domestic initiatives, President Tinubu has actively and strategically sought robust international collaboration and support for Africa’s complex transition towards a green economy, fully acknowledging that the necessary investments are inherently capital-intensive.

Nigeria has already demonstrated commendable leadership on the continental stage by being the first African nation to successfully launch Sovereign Green Bonds, specifically designed to finance environmentally sustainable projects across various sectors.

Furthermore, the country is actively in the process of developing a comprehensive Global Climate Change Investment Fund, with the primary aim of attracting substantial further investment in critical green infrastructure and innovative clean energy initiatives.

Nigeria remains steadfast in its commitment to achieving net-zero greenhouse gas emissions by the ambitious target year of 2060 and is actively engaged in the crucial process of updating its Nationally Determined Contributions (NDCs) under the esteemed UN Framework Convention on Climate Change.

The recent finalisation of the Nigeria Carbon Market Activation Policy in March 2025 is projected to unlock a substantial potential of up to $2.5 billion in valuable carbon credit investments by the pivotal year of 2030. This influx of capital is expected to further bolster climate-aligned economic growth and create new avenues for sustainable development.

Moreover, Nigeria is actively collaborating with various United Nations agencies to develop a comprehensive guideline for a just transition towards a fully decarbonised economy. This crucial collaboration ensures that the inevitable shift towards clean energy and climate-resilient solutions is implemented in a manner that leaves no community or economic sector behind, prioritising the creation of green jobs, the development of essential skills, and comprehensive capacity-building initiatives across the nation.

President Tinubu’s overarching strategy underscores a holistic and integrated approach that seamlessly weaves climate action into Nigeria’s broader development agenda, recognising it not as a separate concern but as a fundamental strategic imperative for sustained economic growth and comprehensive national transformation.

By diligently pursuing these comprehensive and interconnected strategies, Nigeria aims not only to effectively address the urgent and pressing challenges posed by climate change but also to unlock significant and lasting economic and social benefits for all its citizens, paving a clear and sustainable pathway towards a resilient, equitable, and prosperous future for generations to come.

Alex Oware is the Regional Director for YP4T