For millions of Nigerians, checking their bank accounts is no longer just about monitoring spending — it’s about bracing for the next unexplained deduction.
From routine maintenance fees to dubious charges hidden under vague descriptions, a growing number of customers say they are being financially drained by the very institutions meant to safeguard their money.
This rising tide of complaints has prompted experts to warn that Nigerian banks may be quietly engaging in exploitative practices that disproportionately hurt ordinary depositors, especially low-income earners and small businesses.
Bank customers across Nigeria regularly report being hit with charges that seem minor in isolation but accumulate rapidly: N50 to N100 for SMS alerts, even when alerts are not delivered; N50 for every interbank transfer, regardless of platform or frequency; ATM maintenance fees, even for cards rarely used; mysterious “stamp duty” deductions, often with no official receipts and failed transaction charges, which are rarely reversed promptly.
“I just calculated that I’ve lost over N18,000 in the last six months to avoidable deductions,” said Abuja-based teacher Chidi Eze. “I don’t understand some of the charges. When I complain, they either tell me it’s ‘system-generated’ or ‘bank policy.’”
Financial analyst and consumer rights advocate, Dr. Aisha Bello, told this reporter that the situation reflects “a dangerous abuse of financial power.”
“Many banks exploit the financial illiteracy of the average customer. They hide behind technical terms and banking jargon to impose charges that often violate Central Bank guidelines,” Dr. Bello said.
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She also noted that in a country where over 36% of the population is financially excluded, “these charges discourage trust in the formal banking system.”
Professor Tunde Adebiyi, an economist at the University of Lagos, added that while banking services are not free, the level of non-transparent fees in Nigeria points to systemic regulatory failure.
“We must ask: where are the regulators? The Central Bank of Nigeria issues guidelines, but enforcement is weak. Banks flout rules knowing that customers have few alternatives and little recourse,” he said.
In its 2020 Guide to Charges by Banks and Other Financial Institutions, the Central Bank of Nigeria (CBN) set limits on many fees, including electronic transfers, card maintenance, and ATM withdrawals. For instance, the CBN caps card maintenance fees at ₦50 quarterly, but many banks continue to charge monthly or add “account maintenance” fees alongside.
The CBN also ruled that SMS charges should reflect actual cost — typically N4 per alert — yet some banks still deduct between N10 and N100 monthly under blanket descriptions like “SMS/Email Notifications.”
“Banks are supposed to itemize charges clearly in customer statements, but they use vague terms like ‘other fees’ or ‘admin charge,’” said Funke Ogundele, a Lagos-based legal consultant on financial consumer rights.
Another widespread grievance is the delay in reversing failed transactions, particularly on Point-of-Sale (PoS) machines or ATMs.
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According to CBN rules, reversals should happen within 72 hours, but many customers report waiting weeks or getting no resolution at all.
“In some cases, banks earn interest from holding on to millions in customer funds during these delays,” Ogundele added.
Many affected customers do not report or follow up on unauthorized deductions, either due to lack of time, limited understanding of their rights, or resignation that nothing will change.
“This silence emboldens the banks,” said Dr. Bello. “Without organized public pressure, there’s no incentive to stop.”
Experts and consumer groups are calling on the CBN, Nigerian Deposit Insurance Corporation (NDIC), and the Federal Competition and Consumer Protection Commission (FCCPC) to step up enforcement, impose penalties for illegal charges, and ensure transparent banking practices.
The Bank Customers Association of Nigeria (BCAN) has also urged customers to demand detailed statements, scrutinize deductions, and lodge formal complaints when necessary.
“We are not asking for free banking,” Professor Adebiyi emphasized. “But we must end this quiet bleeding of Nigerians through unjustified fees and lax oversight.”