Nigerians decry Bank charges as exploitative, demand CBN intervention

Across Nigeria and the Diaspora, a wave of dissatisfaction is rising among customers of commercial banks, who are calling out what they describe as exploitative charges and deductions on their accounts.

From excessive maintenance fees to unclear electronic transaction deductions, many Nigerians say they are growing weary of banking services that cost more than they offer in value.

Investigations by our correspondent reveal that the Naira’s recent volatility and the Central Bank of Nigeria’s (CBN) cashless policy have intensified concerns over banking charges.

Many customers report monthly deductions ranging from ₦50 to ₦100 for account maintenance alone.

Additional fees include between ₦10 and ₦50 per interbank transfer, ₦6 to ₦15 for SMS alerts, and ₦6.95 for short service codes.

Even ATM withdrawals above ₦10,000 attract a ₦50 charge, while replacing a lost card can cost between ₦1,000 and ₦2,000. These charges often come with an added 7.5% Value Added Tax (VAT).

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Grace Ajaka, a customer, expressed her frustration: “From SMS alert charges to ATM and online transfer fees, these deductions make it difficult to justify saving in the bank. At times, I’m even charged for unsolicited messages. The government needs to step in.”

Students and low-income earners are also feeling the pinch. Ocheneyi Oisi, a student, lamented: “These charges reduce my already small monthly allowance. I’m even considering closing my account.”

Tradespeople are not exempt either. Olusola Lasisi, a tiller, said, “What exactly are they maintaining in my account? I get charged for so-called maintenance, then VAT on top of that. It’s baffling.”

Nigerians Abroad Join the Outcry

Many Nigerians living abroad have taken to social media to highlight the disparity in banking experiences. UK-based doctor, Dr. Harvey Olufunmilayo (@DrHarvey), tweeted, “In the UK, I’ve never been charged for a bank transfer—not once!” Another Nigerian in Qatar, Eniola (@Henzyshso), noted that ATMs there are completely free to use.

Fintech Gaining Ground

As frustration mounts, Nigerians are increasingly turning to fintech platforms like Opay and Moniepoint, which are viewed as more affordable and efficient. PoS operator Eric Okafor explained, “With fintech, the network is better and the charges are minimal. I no longer rely on traditional banks.”

Similarly, fintech user Chidozie Michael said, “I use my Opay card and app and I’ve never faced unnecessary deductions like I did with my former bank.”

Experts React

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Adedeji Olowe, a fintech expert, criticized the burden bank charges place on the poor. “If the CBN is serious about going cashless, it should make transfers free. N₦50 might mean nothing to the elite, but to the poor, every kobo counts.”

Financial expert Joseph Erhirhie added, “The apex bank knows many ATMs lack cash, forcing people to use alternatives. Excessive deductions are discouraging financial inclusion.”

Dr. Samuel Okolobia, a banking analyst, echoed the concern. “These rising charges push people toward informal financial systems. The government must balance digital adoption with affordability.”

He also flagged additional challenges hindering the policy’s success: cybersecurity risks, poor internet infrastructure, digital illiteracy, and the recent 50% hike in telecom tariffs.

Bankers Defend the Charges

Sterling Bank’s MD, Abubakar Suleiman, countered the criticism, explaining that modern banking relies heavily on imported technology to ensure secure and traceable payments. “We charge because the systems we rely on are very expensive. In many cases, the fees don’t even cover the cost of operations,” he said.

A banker who chose to remain anonymous urged aggrieved customers to seek clarity from their banks. “While these charges are necessary to sustain operations, customers are encouraged to seek explanations if deductions are unclear.”

Experts are urging the CBN to revisit its policy framework to align with current realities. They recommend a downward review of ATM, PoS, and interbank transaction fees, especially in underserved areas, to foster inclusion.

Dr. Okolobia concluded, “A holistic approach—addressing both the cost burden and infrastructure limitations—is essential if Nigeria is to successfully drive digital finance adoption without leaving millions behind.”