Don’t Make Banking in Nigeria like South Africa

By Pastor Tay Martins/

The Central Bank of Nigeria’s new policy to impose charges on deposits and withdrawals is not much of a good or noble move. We are playing into the greed and excesses of foreign influence that would hinder the growth of micro-businesses in Nigeria.

In South Africa, you are charged for making deposits or withdrawals from your own account. A minimum of R10 (N250), or in some cases, up to R20 or more is charged even while using your very bank’s ATM. What you don’t want to do in SA banks is make deposits or withdrawals over the counter. You would be shocked and furious when bank charges come up with your statement.

I no longer have an account in any of South African banks. I do transactions through that of family members. I left a sum of R1300 in my last bank account before I travelled out of SA for 10 months to engage in a farming project. On my return, what was left in my account was less than R200. How come? A quick check at my statement indicated a monthly charge of R100+ for “management fee”.

All South Africans are familiar with the above, but they, not even their President, know that banking is not supposed to be so expensive. Banking in SA is too expensive. South Africans are being ripped off by their banks on a daily basis – like they have no idea. How would they have an idea when they lack exposure because they hardly get out of their country?

Those who ventured to invest outside South Africa are the Whites and why would they return home to sensitize their people that banking is not expensive in other countries when the majority of the banks – if not all are owned by Whites?

The majority, if not all the banks in SA belong to the whites and Indians. These expensive banking excesses is exploitation perpetrated on the “low income” and “middle-class”, the majority of whom are blacks.

This exploitation is not limited to the banking sector only. I was opportune to engage in business as a property agent in Gauteng’s real estate sector. I realized that when someone purchases a flat usually by bank finance; whosoever would spend his entire adult life (usually 15 – 20 years) paying up a mortgage for the property. That is fair enough. But after paying up, the owner would continue to pay exorbitant “rates and levy” to the “Body Corporate” his entire lifetime. These rates are currently about 60% – 80% of rent value. So if rental of a flat is valued at R5000 per month, rates could amount to about R3000-R4000 per month in many cases. But I also had the opportunity to see documents of properties that reflected the value of rates shortly after the apartheid era. It was valued at about 10% – 15% of the rent. Meaning, shortly after Apartheid when the rent for flat costs about R500 per month, the rate would cost about R55. But, as a lot of White people were moving away into White-dominated newly developed settlements, thereby selling off their properties in the metropolis to Blacks, the “Body Corporate” of the block property/complex (predominantly White people) gradually increased rates from the initial 10-15%  to what it is currently set at about 60-80% (of the value of rent). This means: when a buyer buys a flat and labour for about 15 years to pay up a mortgage, there is yet no respite. The buyer continues paying exorbitant rates, almost in the value of monthly rent to Body Corporate. It’s like they would never end up owning the property.

When owners of flat retire and can no longer pay rates or at his/her demise, Body Corporate would be quiet. They would wait for the rates to accumulate for over 2-3 years. Then, they go to court saying so much debt (rates) is owed on the property. They devalue the property, buy it up, evacuate the owner who has paid all his life and wait for the next victim. Black people are the usual victim and this evil continues across generations.

Rates are the levies paid by all owners of units in a building or complex for general maintenance. Rates should have been retained at 10-15% as it was in the apartheid era. But since Blacks are being offered to buy and owned flats, the unreasonable increase in rates is a scheme to keep post-apartheid owners of flat perpetually indebted.

Another mode by which Whites in South Africa exploit the Blacks is by setting up utility management companies, usually for electricity and water. Among the very notorious of these companies are those with names sounding “Skonstantial”. They will corner electricity bills that are addressed and sent directly to tenants. They will make up their own bills and impose it on tenants to pay – all in the name of managing utility bills. There are situations where tenants would travel, thereby switching off electricity for a whole month, hoping to receive an almost zero bill. But to their surprise, bill would be the same as previous months, if not higher. While you go to complain, they cut you off, add up reconnection fee and rub it on your face, saying: go to court if you can. For all they care, you are a black man and most probably cannot afford the cost of litigation. Unfortunately, the government that could put a stop to this is too busy playing the “game of thrones” and cannot assist you. These are situations I have not only witnessed but experienced while living in South Africa.

With exploitations in the banking, real estate and utility sector, it’s just like the system is designed such that the “low income” and “middle class” are to work and pay their earnings into the purse of the White people. Because 60-70% of the salary of a low-income earner goes on rent. Research this if you think I am wrong – talking of a system I lived in. Who owns the rented properties? Are they not the Whites of South Africa? Expensive banks are owned and operated by Whites. Exploitations perpetrated by utility companies are arrogantly established by Whites and the list continues without mentioning more. Can the SA government just look into rent and impose some regulations just alleviate the problems of the people?

Julius Malema might just be right. The people of South Africa need economic liberation. Yet, I do not agree with his “hating on Whites” tactics. I do not hate White people. White people are not perfect and just like race, they cannot be. Their incursion into Africa is with bitter tracks, yet the advantage and benefits of technological developments brought to Africa by Whites cannot be ignored. You are at liberty to agree or disagree with me.

South Africa, as business partners, have no doubt influenced Nigeria more positively. Their presence in many business sectors has changed the way Nigeria is doing a lot of things. They came, we received them. As much as we take advantage and benefit of their prowess, let us be very careful lest we find ourselves in our own kind of economic slavery. With South African banks registering their presence and practice in Nigeria’s socio-economy terrain, new bank charges that are suddenly popping up might be a result influence, by arriving banks. It is time to shine our eyes and ask ourselves questions: Are we not drooling towards their culture and system of expensive banking with CBN’s imposition of charges on deposits and withdrawals? You deposit your money; you pay. You withdraw your money; you pay again. Meaning each time you bank, you lose money. What wickedness is CBN branding to us as “cashless policy”? I make electronic bank transfers to tomatoes and pepper sellers in the very local markets. Is our economy not already cashless? This is Nigeria and I think the bank charges we are already paying is much enough.

Tay Martins is a Nigerian farmer based in Ibadan, Oyo State

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