The Central Bank of Nigeria (CBN) has announced a significant revision of bank transfer charges, aiming to make cashless payments more affordable for millions of Nigerians, particularly those who conduct small and frequent transactions.
New Transfer Fee Structure
According to a draft guide for banks and other financial institutions dated April 21, 2026, transfers below ₦5,000 will incur no transaction fee. Interbank transfers between ₦5,000 and ₦50,000 will now attract a flat fee of ₦10. Transfers exceeding ₦50,000 will remain capped at ₦50, representing one of the most substantial pricing changes in Nigeria's digital payments landscape in the past six years.
This initiative is designed to encourage broader adoption of electronic payments, especially among small businesses and informal traders who still predominantly rely on cash.
Why Transfers Above ₦10,000 May Still Cost More
Despite the reduction in transfer charges, Nigerians sending amounts greater than ₦10,000 will still pay at least ₦60 per transaction. This is due to the reintroduced stamp duty, which has replaced the Electronic Money Transfer Levy (EMTL) introduced in 2020.
Under the EMTL, a flat ₦50 charge was applied to transfers of ₦10,000 and above, but it was deducted from the recipient. With the 2026 rule, that same ₦50 levy is now charged to the sender. Consequently, a customer transferring ₦10,000 or more may pay the standard bank transfer fee plus the ₦50 levy, raising the total cost to at least ₦60.
While the CBN aims to lower overall transaction costs, many users may feel a greater impact on higher-value transfers.
New PoS Withdrawal Charges
The apex bank has also introduced a more structured pricing system for Point of Sale (PoS) withdrawals. For “on-us” withdrawals, where customers use their own bank or fintech’s agent, the fee will be ₦100 per ₦20,000 withdrawn. For “not-on-us” withdrawals, where customers use another provider’s agent, the same ₦100 fee applies, plus any additional charge set by the agent.
This replaces the current largely informal pricing system, where some PoS agents charge as much as ₦100 for every ₦5,000 withdrawal.
What It Means for Nigerians
For everyday users, small transfers are now cheaper and, in some cases, free. PoS withdrawal costs may also become more predictable. However, transfers above ₦10,000 could feel more expensive due to the shift in stamp duty deductions.
With e-payments crossing ₦1 quadrillion in 2024 and PoS transactions continuing to rise, the CBN’s new policy signals a stronger push toward a more structured and affordable cashless economy in Nigeria.
Background on Cash Withdrawal and Deposit Rules
Legit.ng earlier reported that the CBN has revised its cash withdrawal and deposit rules, effective January 1, 2026. In a circular signed by Rita Sike, Director of the Financial Policy & Regulation Department, the apex bank stated that the new rules aim to address the high cost of cash handling, security risks, and money laundering, while encouraging wider use of electronic payment channels.
Under the new guidelines, banks and other financial institutions are expected to comply with the updated cash-related rules, which overhaul several existing policies.
