CBN Bank Charges Rule Book: What It Means for Nigerian Customers
By Aboki Forex —
The Central Bank of Nigeria's guide on bank charges, in effect since January 1, 2020, sets the rules for what financial institutions can deduct from customers. It covers electronic transfers, ATM withdrawals, cards, loans, cash transactions and account maintenance.
The guide applies to all CBN licensed or regulated financial institutions. Banks must disclose applicable fees to customers at the point of a transaction. Customers can challenge improper charges and demand explanations for deductions.
Transfer and ATM Fees
Electronic fund transfers have fixed charges. Transfers below N5,000 attract a maximum of N10. Transactions between N5,001 and N50,000 attract N25. Transfers above N50,000 attract N50. RTGS transfers are set at N950.
Withdrawing from your own bank's ATM is free. Using another bank's ATM in Nigeria costs a maximum of N35 after the third withdrawal within the same month for commercial banks.
Debit card issuance, replacement and renewal comes with a N1,000 one-off fee. Naira cards linked to current accounts have no maintenance fee. Cards linked to savings accounts attract a maximum quarterly fee of N50.
Services That Must Be Free
The guide lists services that should not attract any charge. These include account reactivation, account closure, mandatory monthly statements, PIN reset and PIN reissue in commercial banks. Over-the-counter cash withdrawals below the CBN approved limit and intra-bank cash deposits or withdrawals within approved limits are also free. Software OTPs are free, though customers may pay SMS delivery costs when the OTP is sent by text.
Under the cashless policy, individual cash deposits above N500,000 attract a 2% charge. Cash withdrawals above N500,000 attract 3%. For corporate customers, cash deposits above N3 million attract 3%, while cash withdrawals above N3 million attract 5%.
Penalties and Consumer Protection
Where a bank breaches the guide, the CBN prescribes a N2 million penalty per infraction. If a wrong charge is imposed on a customer, the penalty applies to each affected customer. Continued failure to comply with a CBN directive can attract an additional N2 million daily penalty.
Banks must also log customer complaints in the Consumer Complaints Management System and provide a unique reference code. Failure to do this attracts a N1 million penalty per breach.
The guide also says fees described as negotiable must be brought to the customer's attention and mutually agreed through a verifiable means. It is not exhaustive. Financial institutions introducing a new product, service or charge not covered by the guide must obtain prior written approval from the CBN.
What It Means for Customers
For Nigerians coping with rising banking costs, knowing these rules separates an unexplained deduction from a charge that deserves to be challenged. Customers are entitled to know what they are being charged for, and not every fee on a bank statement should be accepted without question.