Approved List of Bank Charges in Nigeria by CBN (Official)

Last updated on August 4th, 2023 at 08:24 pm

Commercial deposit banks typically charge a fee for each service provided. The majority of these have little fees that you may not be aware of. If you’re curious about these deductions, we’ll show you the complete list of bank charges permitted by the Central Bank of Nigeria (CBN).

WHAT YOU NEED KNOW ABOUT CBN BANK CHARGES

On March 1st, 2020, the new Central Bank of Nigeria (CBN) regime of banking charges on customers for services supplied went into effect. Just after third withdrawal from an Automated Teller Machine (ATM) inside the same month, the apex bank had urged banks to deduct withdrawal fees.

Aside this fee, there are other deductions made from both savings account and current account holders in Nigeria. Most bank users have complained of high bank charges to their accounts and are seeing this as theft on the part of the financial institution and the CBN.

OVERVIEW OF THE NEW CBN APPROVED BANK CHARGES

Let’s have a look at the new bank charges that the Central Bank of Nigeria, CBN, has approved:

• As a result of the new CBN guide, transactions below ₦5,000 would incur a maximum fee of ₦10; transfers between ₦5000 and ₦50,000 will attract a charge of ₦25; and transfers beyond ₦50,000 will receive a charge of ₦50.
• The present account card maintenance cost has been eliminated because the accounts already have an account maintenance fee. Savings accounts will now be charged a card maintenance cost of ₦50 every quarter, rather than ₦50 every month.
• The annual card maintenance cost for cards denominated in foreign currency (FCY) has been decreased from $20 to $10.
• After the third withdrawal within a month, ATM fees are lowered to ₦35 from ₦65.
• The charge for a hardware token will be based on cost recovery and will be capped at ₦2,500, down from the previous maximum charge of ₦3,500.
• Fees for required SMS alerts will be based on a cost recovery model, with a maximum price of ₦4 in place previously.
• Payment of bills via e-channels will incur a maximum charge of ₦500, based on 0.75 percent of the transaction value up to ₦1,200.

FULL LIST OF BANK CHARGES IN NIGERIA BY CBN (2024)

The following is a complete list of the bank charges approved by Nigeria’s Central Bank:

CURRENT ACCOUNT MAINTENANCE FEE (CAMF)

• Exclusively applicable to current accounts for customer-initiated debit transactions to third parties and debit transfers/lodgments to the customer’s account in some other bank. It should be noted that CAMF does not apply to Savings Accounts.
• The charge is negotiable, but it cannot exceed ₦1 per mille.

INTERNET BANKING

• Hardware Token — There is a maximum charge of ₦2,500 for cost recovery.
• There is no payment for the Software Token – One-Time Password (OTP). Charges will be based on a cost recovery basis if the OTP is delivered to the customer through SMS.
• Replacement of hardware tokens — Cost recovery is limited to ₦2,500. Only in the event of physical damage, token loss, or replacement after expiration will the customer be charged.
• Payment of bills (including payments made through other E-channels) – Negotiable and limited to ₦500 per beneficiary payable by the sender.

ELECTRONIC FUNDS TRANSFER

The fees accrued for electronic fund transfers include:

• Below ₦5,000 – ₦10
• ₦5,001 – ₦50,000 – ₦25
• Above ₦50,000 – ₦50

CARD MAINTENANCE

• Foreign Currency Debit/Credit Cards — $10 per year (or its equivalent)
• Naira Debit/Credit Cards:
  • Cards linked to current account- No charge
  • A maximum of ₦50 per quarter is charged for cards linked to savings accounts.

CREDIT CARD CHARGES

• Fee for issuing a credit card — ₦1,000 (one-off charge). Regardless of the type of card used, the charge is the same (i.e. regular or premium card).
• Fee for reissuing for lost or damaged cards (at the customer’s request) — ₦1,000 (one-off charge). Regardless of the type of card used, the charge is the same (i.e. regular or premium card)
• Renewal Fee — ₦1,000 (when existing cards expire) (one-off charge). Regardless of the type of card used, the charge is the same (i.e. regular or premium card)
• Interest Rates — They Can Be Negotiated

APPROVED CHARGES FOR DEBIT CARDS BY CBN

• Issuance Fee — ₦1,000 (one-off charge). The same price applies regardless of card type (i.e. normal or premium card)
• Remote-On-Us (from another bank’s ATM) — a maximum of N35 following the third withdrawal within the time limit.
• Replacement Fee (at customer’s instance for lost or damaged cards) — ₦1,000 (one-off charge). Regardless of card type (regular or premium), the charge is the same.
• Renewal Fee — ₦1,000 (when existing cards expire) (one-off charge). Regardless of the type of card used, the charge is the same (i.e. regular or premium card)

PREPAID CARD

• There is no price for loading and unloading.

ATM Transactions

• On-Us (drawing from an ATM of the issuing bank) — No fee
• Not On-Us (withdrawal from other bank’s ATM) in Nigeria — ₦35 just after third withdrawal inside the same month
• Withdrawals from other countries (per exact cost by international acquirer)

MERCHANT SERVICE COMMISSION (MSC)

• General Merchant (Including Domestic, International Travels, and Entertainment) — 0.50 percent of transaction amount, but not more than ₦1,000.
• Bulk Payments (e.g., salaries, dividends, etc.) — Negotiable up to ₦15 per beneficiary payed by the sender.

ISSUANCE OF STATEMENT OF ACCOUNT

• Monthly Statements of Account for Current and Savings Accounts are required and are free of charge.
• Special Statement of Account Request (request in a manner other than the agreed-upon mandatory issue) — ₦20 per page maximum

TRANSACTION ALERTS

• SMS alert (Mandatory) – If a customer chooses not to receive SMS alerts, the consumer must provide the bank with an indemnity (for any damages that may occur as a result).
• Cost recovery (on customer-induced transactions) — No charge (for bank-induced transactions)
• There is no price for receiving an email notification.

OTHERS

• There is no price for reissuing a PIN.
• There is no charge for resetting your PIN.
• Use of Unstructured Supplementary Service Data (USSD) is subject to current NIP costs.
• Purchase with ₦100 cashback each ₦20,000 spent, subject to a daily withdrawal limit of ₦60,000.
• Account reactivation is free of charge.
• No fee for closing an account (savings, current, or domiciliary).

WHAT HAPPENS IF YOUR BANK DEFAULTS

The fascinating aspect of the new CBN-approved bank charges is that every breach by Nigerian banks will result in a payment of ₦2 million by the banks. Following the new directions, the CBN announced that any financial institution that violates any of the terms in the new guidance will be fined ₦2 million per violation or as the CBN may determine from time to time.

Moreover, you can file a report of any bank to the Central Bank of Nigeria, if you feel cheated. That is the length of this article. Kindly drop your comments o your experience concerning the bank charges.