Zero COT
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Zero Commission on Turnover (COT), according to the Central Bank of Nigeria (CBN), is the removal of commission on all customer-induced debit transactions by Deposit Money Banks (DMBs) in the country. The Zero COT commenced in Nigeria on 1 January 2016.[1] The CBN through the Revised Guide to Bank Charges (RGBC) of 1 April 2013, provides gradual steps towards the application of this policy. The guide stipulated a phase-out plan from =N=3 (2013), to =N=2 (2014), to =N=1 (2015) and =N=0 (2016). Also, the policy permits customers to negotiable COT in each of the relevant year subject to the maximum stated in the plan.[2]
The Guide to Bank Charges was introduced in 2014 to provide a standardized means of bank charges on all products and services between customers and DMBs in the country. The guide was revised on 1 April 2013 in order to accommodate current developments in the banking industry. The guide is the compilation of all charges on all services and products rendered by the DMBs and their applications. The policy was established to boost the lost confidence of Nigerians in the banking industry. Financial experts believe, the application of the policy will drag more people into the financial net.[3] In January 2016, the monetary regulatory body noticed the persistence in charging the banned charges by the DMBs. This led to the committee in charge of Bank and Currency in the House of Representatives (HOR) to demand for immediate refund of all COT charges from 1 January 2016.