NewStats: 3,259,431 , 8,170,080 topics. Date: Saturday, 24 May 2025 at 11:35 PM 156n12

What might seem like minor deductions, when accumulated, create a significant burden often uned for by consumers.

Ozovehe Blessing, an Abuja-based school teacher, regularly sends money to her younger brother at Kogi State University. Recently, she transferred N5,000 via her mobile banking app and was charged a N10 transfer fee. When her brother withdrew the money from an ATM outside his bank’s network, he lost an additional N100 in withdrawal fees.

Had he used a POS agent, the cost could have been even higher, ranging from N300 to N500, depending on location. By the end of the transaction, the original N5,000 could have been reduced to N4,600 or less, all due to banking charges.

Nigerians have long expressed frustration over the numerous and often hidden charges associated with their banking and electronic transactions. What might seem like minor deductions, when accumulated, create a significant burden for bank customers.

These charges—from ATM withdrawals to fund transfers and card maintenance fees—increase transaction costs across various banking services. As these costs rise, many Nigerians feel the impact more amid a high inflationary trend that has weakened their purchasing power.

ATM and Card Costs
In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services, the Central Bank of Nigeria (CBN), on 11 February, introduced new charges for both “on-site” and “off-site” withdrawals.

Nigerians will now pay higher fees on cash withdrawals. On-site ATM withdrawals—those made at a machine owned by a bank but outside its branch premises—attract N100 per N20,000 withdrawn. Off-site ATM withdrawals, such as those at shopping centres, airports, or standalone cash points, will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal, bringing the total possible charge to N600 for every N20,000. Withdrawals from an holder’s own bank’s ATMs remain free.

Similarly, debit and credit cards have annual maintenance fees. Savings -linked debit cards incur N50 per quarter, while issuing, replacing, or renewing credit cards attracts a N1,000 charge.

In addition, customers who use hardware tokens for internet banking—a security device often required for high-value transfers—must pay up to N2,500 for the device.

Cybersecurity Levy
The CBN initially announced a 0.5 per cent cybersecurity levy on all electronic transactions. The decision sparked a widespread public outcry, prompting the House of Representatives to ask the central bank to suspend its implementation.

In response to the backlash, the CBN announced that the levy was 0.005 per cent on all electronic transactions processed by banks and other financial institutions, which is in line with Cybercrime (Prohibition, Prevention, etc.) Act, 2015.

Under the revised structure, a N10,000 transfer now attracts a cybersecurity levy of N0.50. The charge is N5 for a N100,000 transfer, while transactions exceeding N1 million incur a N50 fee. Although the reduction lessens the burden, it remains one of many fees Nigerians pay in their daily financial transactions.

Transactions Charges
Electronic funds transfers also come at a cost. Transactions below N5,000 attract a N10 charge, while those between N5,001 and N50,000 incur a N25 fee. Transfers above N50,000 cost N50 per transaction. Though seemingly insignificant in isolation, the frequency of transactions—whether for bills, remittances, or simple transfers—results in a steady erosion of disposable income.

Merchant services are also affected. A 0.5 per cent commission is imposed on every transaction, capped at N1,000 for general merchants. Bill payments via electronic channels have a N500 limit per beneficiary.
While these fees may appear negligible, their cumulative impact across multiple service points makes them significant for many Nigerians.

Not-So-Clear Deductions
Many Nigerians only realise the full extent of these deductions when they see their balances shrink after routine transactions.
The impact is even more severe for larger transactions.

Olalekan Adewale, a frozen foods trader at FHA Market in Abuja, regularly transfers N500,000 to his suppliers to replenish stock. Each transaction now attracts a N25 cybersecurity levy, a N50 bank transfer fee, N3.75 in VAT on the service charge, and N6 for SMS notifications—bringing total deductions to N84.75.

While seemingly minor, these charges add up quickly for traders like Mr Adewale, who process multiple transactions weekly. For many Nigerians operating on thin margins, such routine deductions—though individually small—have become a quiet but persistent burden in a tough economic condition.
Upon receiving the funds, Mr Adewale’s suppliers also face deductions when making further transactions, effectively diminishing the value of the original amount.

Thriving Neobanks
In the midst of the concerns generated by the deductions, neobanks have become a lifeline for Nigerians, not just for tech-savvy youth but for businesses of all sizes. In open markets and shopping malls, traders and artisans own POS machines operated by neobanks to ease transactions.

“Customers don’t always have cash, and POS agents charge too much,” says Adetifa Kemi, an Abuja-based trader. “With my own machine, I don’t lose sales.”

This shift is reshaping everyday commerce. Rather than relying on traditional banks, which burden customers with high transaction fees and unreliable service, businesses are turning to neobanks for smoother, cheaper payments. Platforms like Moniepoint charge lower fees, charging 0.5 per cent for withdrawals up to N20,000 and a flat N100 for anything higher. Transfers cost just N20—far less than what banks demand.

For many, the choice is now clear. “I used to visit my bank almost every day, but now I barely go,” says Mr Adewale. “I do everything with my Moniepoint.”

Impact on Businesses
The implications of these financial pressures extend beyond individual customers. High transaction fees create additional barriers to financial inclusion, making formal banking services less accessible.

Excessive banking charges also reduce profit margins for small businesses, complicating cash flow management and discouraging digital payments.

Also, maintenance charges are an additional burden for many Nigerians. Some banks charge fees on current s based on the transaction amount, set at N1 per N1,000, while others accumulate the charges and debit them at the end of the month.

Some banks offer exemptions under specific conditions. For example, a transfer of N500,000 would incur a fee of N500. While savings s are usually exempt from these charges, other fees—such as those for electronic transfers, card maintenance, and SMS alerts—still apply.

While the CBN periodically revises banking fees to reflect economic realities, Nigerians continue to face an ever-expanding list of charges, including VAT at 7.5 per cent, a USSD charge of N6.98, an SMS alert of N6, and stamp duties of N50 on eligible transactions above N10,000.

Certain exemptions exist for transactions between s held by the same customer or for salary payments, but these do little to ease the financial strain on the average consumer.

Regulatory oversight
The CBN, through its Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions, regularly reviews and enforces penalties for excessive charges, with financial institutions found in breach facing fines of up to N2 million per infraction.
Despite these regulations, concerns persist about the fairness and transparency of banking costs.

In some cases, customers face fees for services they were not explicitly aware of, such as intra-scheme money transfers, which attract a minimum charge of N50 for holders and N500 for non- holders.

Under the CBN’s cashless policy, individuals depositing over N500,000 are subject to a two per cent fee, while withdrawals above this threshold incur a three per cent charge.

Corporate entities face even higher rates, with deposits above N3 million attracting a three per cent fee, while withdrawals incur a five per cent charge.

Banking or Money Keeping?
With the cumulative effect of these charges, many Nigerians are left questioning whether it is worth keeping funds in a bank. The barriers to banking continue to rise for the financially excluded, and for those already struggling, the mounting fees only deepen economic hardship.

Paul Alaje, an economist and senior partner at SPM Professionals, argues that Nigeria’s traditional banking model is outdated and primarily focuses on holding money and imposing charges rather than lending to businesses. He contrasts this with banking systems in places like the UAE, where seamless transactions are the norm.

He says that traditional banks have strayed from their core function. “Banking is not done in Nigeria. What we have is moneykeeping and charges on deposits,” he says.

He predicts that traditional banks will struggle against fintech companies, which continuously evolve to meet customer needs. Over time, as fintechs gain market trust and demonstrate longevity, investors will shift their focus, selling shares in legacy banks and buying into fintech firms. “Those banks, no matter their size, may eventually give way to the new,” he says.

Mr Alaje also points to what he describes as a fundamental flaw in Nigeria’s banking model: SMEs struggle to access loans because banks prioritise collecting deposits and imposing fees.

He argues that this is unsustainable, as banks rely on depositors to maintain their posh offices, fleets of cars, and large staff numbers.

“Where do you think the money will come from? It will come from depositors, and that is why new charges will be introduced to gather the money and declare billions of naira at the end of the year,” he says.

https://www.timesng.com/business/business-news/787965-special-report-inside-the-excessive-bank-charges-killing-nigerians.html

Cardoso whatever is a criminal!

Banking or Money Keeping?

With the cumulative effect of these charges, many Nigerians are left questioning whether it is worth keeping funds in a bank.

The barriers to banking continue to rise for the financially excluded, and for those already struggling, the mounting fees only deepen economic hardship.

“Banking is not done in Nigeria. What we have is moneykeeping and charges on deposits."

Imagine all kinds of deductions from billions of s worldwide in the name of God-knows-what? From spurious ATM charges, SMS charges, card maintenance fees, to POS charges nowadays. It is incredibly insane.

Banking or financial policies subtly programmed to economically emasculate the the beleaguered citizens of this nation.

Everything in this country is in enshambles.

If you think all this politicians care about this country then you are delulu.

The politicians are just building generational wealth for themselves.


But why will a sane person be defending this government It baffles me seriously.

No good

Hmmm

APC chairman for my ward don sack driver, bought motorcycle for himself ,
You think you are doing me , e go reach everybody ai

CBN and the commercial banks are thieves.


Every where you look, from left to right; north to south, east to west you are bound to be swindled, either legitimately or illegitimately; from government who are supposed to protect you because you have willed your fundamental rights and ability to make decisions to them down to your family, friends, acquaintances, even your enemies are not excluded.


Such is a society we have build for our selves. A society where everybody is a victim of the circumstances we have collectively, directly or indirectly build.


Let's enjoy...

Its serious

Me na kolo I de save my money. Nothing concern me with bank charges.

If you're anywhere in the world and you are curious about what a nation looks like when its institutions have abandoned the people, come to Nigeria.

You buy data (spectranet, mtn) some of the nation’s top telecom providers. You buy 40GB of data. You track your usage carefully, only to watch the data mysteriously vanish. No streaming, no s, no explanations. Try to complain? You'll be directed to a non-functioning chatbot or a hotline that will keep you on hold until you give up. No recourse. No refund. No ability.

Try sending money with your bank’s mobile app (Zenith Bank). You'll need a soft token because :surprise: your hard token, the one you paid for, doesn’t work. You request the token. It doesn’t arrive. You wait. The app logs you out. Then and only then, the token arrives, expired and useless. The bank still charges you for the SMS charge. You reach out to their line. It either doesn’t connect, or you’re told to "visit your nearest branch," where you’ll be met with long queues, cold indifference from frustrated customer service officers who are tired probably because they are understaffed and not well paid. They have been people plus employees for a century. So, more dead ends.

Need a prepaid electricity meter? Brace yourself for years-long saga. Our electricity distribution companies (Discos) are masters of bureaucratic gymnastics. They’ll stall your application. They'll "lose" your documents. They’ll tell you to check back next week, every week, while piling on estimated bills that have no basis in your actual consumption. They are not incompetent. All is a calculated obstruction. They know estimated billing gives them a blank check to charge you whatever they like, and when you challenge it, they point to “system records” no one can . Finally, on your death bed, after many decades of persistence or knowing someone inside, you get a prepaid meter. You think you’re free. You think you have done something for your descendants. You think that your children will finally pay only for what you use. But just as you breathe relief and your final breathe, another trap snaps shut for those that will inherit your property: :the hidden debt.:

What many Nigerians don’t know is that these meters come pre-loaded with arrears. Maybe it’s from the previous occupant. Maybe it’s from phantom charges the Discos won’t explain. But here’s what happens: you recharge and buy units, and your meter gives you power worth 25%. The rest? It quietly goes to pay off a debt you never agreed to, never knew existed, and were never allowed to dispute. You didn’t even know about such debt, poor Nigerians. You are paying for the electricity your grandfather used.

So you try public documentation because Olubunmi Tunji Ojo has fooled you. You try renewing your port online. So you go to the self-service portals and the websites are clean with step-by-step instructions. The website doesn’t stall. Confirmation emails arrive. But at some bloody point you have to show up in person.

At the immigration office, you’ll realize you have committed the greatest crime by initiating your registration by yourself. You would find their staff crawling around, and you are the sugar to devour. But you have used the portal, so you are useless to them. The senior officers will attend to yahoo boys and other oppressive Nigerians. You don’t want to play along? So they will make you wait all day, while in your presence, you see others that didn’t make the mistake of using the online self-help portal do their capture and go. At the end of the day, you will be told “the network is down” or “come back tomorrow.” Tomorrow, you get back there, and they are in a meeting for hours , and no one can locate your file. So, you begin to search for an officer that can save you from your mess. Shame on this minister for not initiating a process to curb these corruption. You go around the country, and it is stark. This isn’t poor infrastructure. It’s intentional dysfunction that is stark. Nigeria is a calculated system where public servants delay and confuse, because they profit from the chaos. If you could do it yourself, they lose leverage. Shame on the minister, for he knows. Shame on the EFCC too!!!
Going to their offices, don’t come with dignity, they loathe it. It is arrogance to think you are above those that must pay their way. And God that resist the proud, shey your dignity isn’t stripped in a single blow; it’s eroded by a thousand small humiliations. I this experience and must be depressed as the corper girl stated. Nigerians iyaf suffer.

The regulatory bodies? Don’t bother. You reach out to FCC but they exist in name only, they offer form without function. hollow institutions, they cannot attend to Nigerians, except those with megaphones.

Tinubu is a very wicked man

Na God go punish this animal BAT. He brought catastrophe upon Nigerians. People are dying like flies and the bastard is in renewing old dirty blood in the hospital.

Wicked BAT

Cry me a river

Nothing will happen, Nigerians know how to adjust and adjust and manage and pray😂😂😂
Stup!d bunch

You don't expect banks to maintain your and safeguard your money free of charge, that is why there are charges, you come to the bank, you fill form, have you stopped to ask the cost of the paper, the printer for printing your statement, salaries to the staff attending to you, renovations and maintenance done to the branch as a whole, the atm machines etc.

We will all be fine.

Racoon:


https://www.timesng.com/business/business-news/787965-special-report-inside-the-excessive-bank-charges-killing-nigerians.html

Read their profile, from childhood to date and tell me what you expect from them.

Racoon:


https://www.timesng.com/business/business-news/787965-special-report-inside-the-excessive-bank-charges-killing-nigerians.html

that was how access bank deducted 5k from my for "household coronation fee" without sending me an alert. Thank God for the mobile app that helped me notice the deduction. I called them out on X, sent them multiple emails, I went as far as calling the customer care to insult the hell outta them. Cut the long story short, the returned my money with apologies.

And you think it's only in Nigeria

Tiny drops makes an ocean

CBN and FG are ripping us, even in this digital banking era.

So what then are the gains of digital over traditional banking?!

You need to travel and see.

No failed transaction in over 2 years now.
No bank charges for over 2 years now.
No card maintenance fees in over 2 years now.
Opened an without ever visiting the bank
Everything is e-transaction. I have not held physical cash in over 2 years. Funny enough, na my Nigerian useless bank dem dey debit me back to back every month end.

These things are not rocket science in a saner clime.

Obodo oyibo sweet abeg...

Quelme:
You need to travel and see.

No failed transaction
No bank charges for over 2 years now.
No card maintenance fees
Opened an without ever visiting the bank
Everything is e-transaction.

These things are not rocket science in a saner clime.

Obodo oyibo sweet abeg...

MyExpression:
CBN and FG are ripping us, even in this digital banking era.

So what then are the gains of digital over traditional banking?!

ERockson:
Very wicked banking institutions.

Corporate Rippers .

Afonja007:
Nigeria is the only country where citizens are buying their hard earned money started by useless party called Apc

Seniorwriter

abobote:
And you think it's only in Nigeria

It's too much

Very wicked banking institutions.

Nigeria is the only country where citizens are buying their hard earned money started by useless party called Apc

It is like I will leave this country

Anybody that voted or ed APC comes here to complain may you sleep and never wake up

One of the biggest scams in Nigeria...

Tinubu AKA Zacheaus