The Central Bank of Nigeria (CBN) has released a draft of its revised Guide to Charges by Banks and Other Financial Institutions, 2026, introducing new caps on transaction fees and stricter disclosure rules aimed at improving transparency across Nigeria's banking sector.
New Guidelines for a Consumer-Friendly System
In a circular dated April 21, 2026, the apex bank stated that the updated framework reflects its broader goal of strengthening financial stability, expanding financial inclusion, and accelerating the adoption of digital financial services. The document was signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department.
The revised guide updates the 2020 version to better align with current market realities, particularly the growing reliance on digital payments and mobile banking. According to the CBN, the new guidelines represent a deliberate policy shift toward a more transparent and customer-focused banking environment.
Caps on Transfer and ATM Withdrawal Fees
One of the most notable features of the draft guidelines is the introduction of structured caps on transaction charges across multiple banking channels. For electronic funds transfers, interbank transactions between ₦5,000 and ₦50,000 will now attract a maximum fee of ₦10. Transfers above ₦50,000 are capped at ₦50, while transactions below ₦5,000 remain free, reinforcing efforts to promote low-value digital payments.
ATM withdrawal charges have also been standardised. Customers using another bank's ATM will pay ₦100 per ₦20,000 withdrawn on on-site machines. Off-site ATM withdrawals will attract the same ₦100 fee, along with an additional surcharge of up to ₦500 per ₦20,000. These ATM charges had previously been outlined in an earlier circular issued in February 2025 but are now formally integrated into the broader 2026 guide.
Lower Costs for Merchants and Boost for Digital Payments
In a move expected to benefit businesses, the CBN has capped merchant service charges at 0.5 percent per transaction, subject to a maximum of ₦10,000. This measure is designed to reduce the cost burden on merchants and encourage wider acceptance of digital payment channels, including point-of-sale (POS) and online transactions. By lowering fees, the regulator hopes to deepen Nigeria's transition toward a cashless economy.
Mandatory APR Disclosure for Loans
Beyond transaction fees, the CBN is tightening lending transparency rules by mandating the use of the Annual Percentage Rate (APR) framework for all loan-related disclosures. Under the new rule, financial institutions must present interest rates alongside all associated fees in a single APR figure. This ensures that borrowers clearly understand the total cost of credit, eliminating hidden charges that have historically made loan pricing opaque. The policy is expected to improve consumer confidence in the lending market while promoting fair competition among banks.
Negotiable Charges Within Defined Limits
While the revised guide allows for some flexibility, it introduces firm boundaries around negotiable charges. Banks are required to inform customers when fees are negotiable and must ensure that agreed charges do not exceed the prescribed maximum limits. This provision aims to empower customers while preventing arbitrary or excessive pricing practices within the financial system.
Stakeholder Input Before Final Rollout
The CBN has opened the draft guidelines for public consultation, inviting stakeholders to submit feedback before May 8, 2026, through its Policy and Regulation Division. Once finalised, the new guide will replace the 2020 version and is expected to take effect from May 1, 2026, subject to the outcome of ongoing consultations.
Overall, the revised framework marks a significant evolution in Nigeria's banking landscape, with a clear focus on cost transparency, standardisation, and enhanced consumer protection.
