The Central bank of Nigeria was founded in 1958, it has been the regulating house to the Nigerian banks to further secure and administer banking options. through the decades there have been several reforms to strengthen the institution. In 2015 during the governorship of Prof Chukwuma, the Nigerian bank capital base was moved to N25 billion.
The central bank of Nigeria in attempt to revitalize its banking industry introduced (CAT) Current account maintenance fee for current account holders; which sums to N1 per N1,000, meaning for every N1000 withdrawal there will be a N1 maintenance charge from the account.
Current account otherwise known as a transaction account is a deposit account that can be used for both personal and business dealings, the account could be runned as partnership account, private organization, public limited companies or just as an individual account to perform bulk transactions of cash, the basic essence of a current account is simply because it’s deposited amount is unlimited and also because of other service involved to promote the flow of funds for proper analysis and declaration.
It is a more conscious and matured way of running a banking system as it offers peculiar services which include:
- A Cheque book
- Monthly statement of account
- Assigned account officer
- Ability to render standing order
- Bank overdraft
- Money order
- ATM/Debit card
There are three major account types in the Nigerian banking institute which are:
- Savings account
- Current account
- Domiciliary account
Others are fixed Deposit account, Cooperate Account and Joint account, but we are discussing Current Account: how to open it and charges attached to its transactions.
Current Account is available in two modes: as an Individual Account or as an Organization; and there are requirements needed to open either of the account.
For Individual Current Account The Requirements Are
- 2 References with Current account, either from the bank or external bank to testify that the new account holder is eligible to open and run the account.
- Fill out form requesting detailed personal information and added relevant questions
- Stipulated amount of fund expected in the account
- 2 Passport photograph
- Utility bill
- Valid ID card
- Non Nigerian are usually requested to provide work/residence permit
- A valid and consistent signature
Requirement For Corporate Bodies Includes
A certificate of incorporation from (CAC) Corporate Affairs Commission
A passport photograph and specimen from signatories
A copy of Memorandum of Association, obtained from CAC
Business Utility bills
Reference letter from parties opening the account
Tax clearance receipt or Federal Inland Revenue number to show its conformity with Federal and tax laws
Charges for opening a Current Account varies depending on the bank, some bank charge a minimum of 5,000 while others charge higher than these.
All bank have a flexible charge for their Current Account depending on the package applied for, according to a particular bank, they charge monthly services rendered which includes statement of account, mobile banking, POS, and other services for a monthly fee of N1,000 while on other package of the same bank charges are N3,000 depending on the types of benefits attached, and also up to N5,000 monthly depending on benefits added includes access to loans and others.