The Central Bank of Nigeria (CBN) has issued a directive requiring banks and other financial institutions to submit monthly reports on all failed electronic transactions across various digital platforms. This move aims to enhance transparency and address recurring service failures that have long frustrated customers.
Details of the Directive
The directive was outlined in a circular dated April 21, 2026, titled “Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026 (The Guide),” signed by the Director of the Financial Policy and Regulation Department, Rita Sike. Under the new requirement, Chief Compliance Officers and Heads of Information Technology at financial institutions are mandated to jointly compile and submit electronic reports detailing all failed transactions that originate or terminate within their systems.
The reporting covers a wide range of digital channels, including Automated Teller Machines (ATMs), Point of Sale (PoS) terminals, mobile banking platforms, and internet-based services. The circular stated: “The Chief Compliance Officer and Head Information Technology shall jointly render monthly reports electronically, of all failed electronic transactions via various e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminate in the institution.”
New Instructions for Banks
The reports of failed transactions are to be submitted to designated CBN email addresses, reinforcing the apex bank’s push to improve transparency and ensure closer monitoring of recurring service failures. A major highlight of the new framework is the introduction of caps on several banking charges, alongside stricter disclosure requirements. Financial institutions are now required to clearly communicate all applicable fees to customers and, in some cases, allow for negotiated charges. Where fees are negotiable, customers must be informed of their rights, and agreements must be documented through verifiable means.
The guide also tightens regulatory control over new fees by mandating that any product, service, or charge not explicitly covered must receive prior written approval from the CBN before implementation. The revised framework applies broadly across the financial sector, covering commercial banks, merchant banks, payment service banks, non-interest banks, microfinance banks, finance companies, primary mortgage banks, development finance institutions, credit guarantee companies, and mobile money operators.
Consumer Protection Measures
To further protect consumers, the CBN stipulated that non-credit-related charges can only be deducted if sufficient funds are available in a customer’s account. Any unpaid charges must be deferred and must not attract additional interest, a move aimed at preventing excessive customer liabilities. The guide also provides detailed caps on transaction fees. Interbank electronic transfers will attract no charge for transactions up to N5,000, N10 for transactions between N5,000 and N50,000, and N50 for transfers above N50,000. ATM withdrawals from other banks will cost N100 per N20,000 withdrawal on on-site machines, with additional but capped surcharges for off-site transactions.
Legislative Action
Earlier, the House of Representatives initiated plans to investigate charges of commercial banks on customers' accounts and plans to summon the CBN and major commercial banks to appear before the committee on banking regulations. The move followed the adoption of a motion of urgent public importance sponsored by Tolani Shagaya, a lawmaker from Kwara. The motion, titled “Need to Curb Arbitrary Bank Charges and Protect Nigerian Customers,” stated that the deductions from customers' accounts by banks operating in Nigeria are arbitrary, excessive, and unexplained.
