The Central Bank of Nigeria (CBN) has issued a comprehensive guide that sets maximum charges for banking services, including electronic transfers, ATM withdrawals, and cash transactions, while also listing services that must be free for customers. The guide, titled the Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, took effect on January 1, 2020, and applies to all institutions licensed or regulated by the CBN.
Electronic Transfer Charges and ATM Fees
Under the guide, electronic fund transfers are subject to prescribed charges based on the amount transferred. Transfers below N5,000 attract a maximum charge of N10, while transactions between N5,001 and N50,000 attract N25. Transfers above N50,000 attract N50. For Real-Time Gross Settlement (RTGS) transactions, the prescribed charge is N950.
For ATM withdrawals, customers using their own bank's ATM are not charged. However, using another bank's ATM in Nigeria attracts a maximum charge of N35 after the third withdrawal within the same month for commercial banks. The guide also sets a N1,000 one-off fee for debit-card issuance, replacement, and renewal. For naira cards linked to current accounts, the maintenance fee is listed as no charge, while cards linked to savings accounts have a maximum quarterly maintenance fee of N50.
Services That Must Be Free
The guide identifies several services for which customers should not be charged. These include account reactivation, account closure, mandatory monthly statements, PIN reset, and PIN reissue in commercial banks. Over-the-counter cash withdrawals below the CBN-approved cash withdrawal limit and intra-bank cash deposits or withdrawals within approved limits are also listed as having no charge. Software OTPs are also free, although customers may bear SMS delivery costs where the OTP is sent by text message.
Cash Transaction Charges and Customer Protections
The guide sets charges under the cashless policy for transactions above specified thresholds. For individuals, cash deposits above N500,000 attract a 2% charge, while cash withdrawals above the same threshold attract 3%. For corporate customers, cash deposits above N3 million attract 3%, while cash withdrawals above N3 million attract 5%.
One of the most important provisions gives customers protection against improper charges. Financial institutions must disclose transaction fees, and receipts, alerts, and confirmations for charges must contain descriptions of the applicable fees. Where a financial institution breaches the guide, the CBN prescribes a penalty of N2 million per infraction. Where a bank wrongly imposes a charge on customers, the penalty applies to each affected customer. Continued failure to comply with a CBN directive can attract an additional N2 million daily penalty. Banks must also log customer complaints in the Consumer Complaints Management System and provide customers with a unique reference code. Failure to do so attracts a N1 million penalty per breach.
The guide also states that it is not exhaustive. Financial institutions introducing a new product, service, or charge not covered by it are required to obtain prior written approval from the regulator. For millions of Nigerians dealing with rising banking costs, understanding these rules can make the difference between accepting an unexplained deduction and knowing when a charge deserves to be challenged.
