10 Bank Charges Lawmakers Want Nigerians to Pay Attention To

The House of Representatives has begun investigating what it describes as “arbitrary and excessive” deductions from customers’ accounts by commercial banks in Nigeria. Lawmakers say too many Nigerians are losing money to unexplained bank charges, and they want the Central Bank of Nigeria (CBN) to step in.

During Tuesday’s plenary session, a motion sponsored by Tolani Shagaya, a lawmaker from Kwara State, sparked the conversation. 

The motion, titled “Need to Curb Arbitrary Bank Charges and Protect Nigerian Customers,” accused banks of exploiting customers through constant and unclear deductions.

Shagaya warned that these charges could destroy public trust in the banking system. According to him, “When people lose trust in the banking system, it undermines the government’s goal of building a strong, digital, and cashless economy.”

Following the debate, the House directed the CBN to publish a clear and simplified list of all approved bank charges and to sanction any bank found guilty of unauthorized deductions.

To help Nigerians understand what they are being charged for, here are 10 approved bank charges every customer should know.

Electronic money transfer levy

Each time you transfer ₦10,000 or more electronically, you pay a flat levy of ₦50. This charge applies to all banks and financial institutions in Nigeria.

ATM withdrawal from other banks

Withdrawing from your own bank’s ATM is free, but if you use another bank’s ATM, you are charged ₦100 for every ₦20,000 withdrawn. Some off-site ATMs may charge up to ₦500 per transaction.

Card maintenance fee

For every naira debit card linked to a savings account, banks charge ₦50 quarterly. For foreign currency cards, the fee is $10 yearly.

Account maintenance fee

Banks charge ₦1 for every ₦1,000 of a debit transaction, such as withdrawals or transfers from your current account.

SMS alert fee

Each time your bank sends you a transaction alert via SMS, you pay ₦4.

Debit or Credit Card issuance and renewal

When you get a new ATM card or replace an old one, the fee is ₦1,000 per card.

Cashless policy for individuals

Depositing or withdrawing cash above ₦500,000 attracts charges — 2% for deposits and 3% for withdrawals. However, the CBN has suspended these charges until December 31, 2025.

Cashless policy for corporate accounts

For companies, there is a 3% charge on cash deposits above ₦3 million, and a 5% charge on withdrawals above that limit.

PoS Transaction charges

When using Point of Sale (PoS) terminals, the typical charge is ₦100 for cash withdrawals or deposits, and ₦50 for transfers.

Bill Payments via Electronic Channels

When paying bills like DSTV or electricity through your bank’s app or USSD, the maximum charge is ₦500 or 0.75% of the transaction value (whichever is lower, up to ₦1,200).
For example, UBA charges ₦20 for bill payments via USSD and ₦100 for DSTV subscriptions.

What the lawmakers are saying

Lawmakers are demanding that the CBN make these approved charges public so Nigerians can know when banks go beyond the rules. 

They also want stricter penalties for banks that overcharge or make hidden deductions from customers’ accounts.

The House believes this move will restore confidence in the banking system and encourage more Nigerians to save, especially at a time when the government is pushing for a fully digital economy.

As of December 2024, customer deposits in Nigeria’s top 10 banks rose to ₦140.97 trillion, up from ₦93.5 trillion in 2023, showing that Nigerians still rely heavily on banks. But lawmakers say that trust can only last if banks stay transparent and fair in their charges.