Reprieve may soon come the way of Federal Government contractors as the House of Representatives has waded into the alleged sharp practices in the payment of contractors by the Ministry of Finance and Accountant General Office of the Federation.

The House in response to the Motion titled; “Alleged Fraudulent Practices in the Payment of Contractors by the Offices of the Ministry of Finance and Accountant General of the Federation cosponsored by Hon. Professor Paul Sunday Nnamchi, House Leader, Hon Professor Julius Ihonvbere and Hon. Aminu Sani Jaji directed the Committee on Finance to investigate the allegations.

The House also urged the Federal Government to strengthen internal controls and enforce strict penalties for officials found culpable in corrupt practices within the parliament system and subsequently establish a transparent digital payment system that eliminates discretionary human interference in payment of contracts.

Professor Ihonvbere who presented the motion on behalf of the lead sponsor Professor Nnamch who was unavoidably absent reminded his colleagues that the 1999 Constitution of the Federal Republic of Nigeria, as amended “prescribes transparency, accountability and prudent management of public funds as fundamental principles of governance”.

He went further to cite section 15(5) of the constitution which provides that, “the state shall abolish corrupt practices and abuse of power which underscore the government’s obligation to prevent investigate and punish malfeasance particularly in public finance management “.

He noted that there had been reports of contractors being coerced into offering kickbacks or face unjustified deductions from their payments as a condition for processing of their invoices by the officials of Federal Ministry of Finance.

The sponsors further stressed that “unrestrained continuation of these corrupt practices were capable of discouraging credible investors and undermine confidence in government’s ability to uphold transparency and accountability”.

The House sponsors also believed that without thorough investigations of the alleged sharp practices and consequently addressing them, contractors might lose confidence in government engagements thus leading to slow economic development and failed infrastructure projects nationwide.

By Kayode Sanni-Arewa

The Central Bank of Nigeria (CBN) has warned that it will deal with banks that force customers to withdraw less than N20,000 per transaction from Automated Teller Machines (ATMs) despite having sufficient funds and requesting a higher amount.

This was disclosed in a Q&A explainer released by the CBN bank following its recent review of ATM withdrawal fees.

The CBN emphasized that ATM charges for withdrawals made from other banks’ ATMs—both on-site and off-site—are based on the expectation that customers can withdraw up to N20,000 per transaction.

It stated: “Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately.”

The CBN encouraged affected customers to file complaints against banks that impose unnecessary restrictions.

“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using [email protected].”

The CBN further clarified that banks are not allowed to charge more than the prescribed ATM fees, though they can charge less depending on their cost structure and business model.

“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive.”

The CBN advised customers to withdraw cash from their own bank’s ATMs to avoid extra charges. It also encouraged customers to explore alternative payment options such as mobile banking apps, POS terminals, and other digital payment channels to minimize ATM withdrawal fees.