• Nigerian banks comply with CBN’s directive over bank charges for customers.
  • In December 2019, the Central Bank of Nigeria (CBN) mandated banks and non-bank financial institutions to reduce charges applicable to bank accounts, electronic transfers, and Automated Teller Machines (ATMs).
  • CBN says the essence is to reduce the cost of banking services to customers and allow them to embrace electronic channels.

Nigerian banks have kicked off the implementation of the new Revised Guide to Bank Charges (RGBC) for customers on ATMs and electronic transfers.

Last December, the Central Bank of Nigeria (CBN) mandated commercial banks and non-bank financial institutions to reduce charges applicable to bank accounts, electronic transfers, and Automated Teller Machines (ATMs).

Godwin Emefiele, CBN governor, speaking at the end of the 270th meeting of the Monetary Policy Committee (MPC) at the apex bank’s headquarters in Abuja. (Twitter/Channels Television)
Godwin Emefiele, CBN governor, speaking at the end of the 270th meeting of the Monetary Policy Committee (MPC) at the apex bank’s headquarters in Abuja. (Twitter/Channels Television)
Twitter/Channels Television

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The revised charges replaced the one issued in May 2017.

Business Insider SSA gathered that at first business day in 2020, most commercial banks have fully compiled with charges while some sent messages to customers informing them of the changes.

Fidelity Bank Plc, for instance, issued a notice to its customers about the CBN's directive and its compliance with the new charge regime.

“In line with the Central Bank of Nigeria’s (CBN) directive to implement provisions in the Revised Guide to Bank Charges (RGBC), we wish to inform you about the reduction in charges for the following transactions effective January 01, 2020.

New bank charges structure (Fidelity Bank)
New bank charges structure (Fidelity Bank)
Fidelity Bank Plc

Customers say banks devise new means of deducting ATM charges

However, some bank customers on Thursday frowned at their banks for not complying with the new guidelines for charges on Automated Teller Machine, released by the Central Bank of Nigeria.

In a report by the News Agency of Nigeria in Abuja, some customers regretted that banks had now devised a means of deducting ATM charges without sending the alert to their customers.

One of the customers of a popular bank, Tony Iruu disclosed to NAN that the bank had refused to adhere to the CBN guidelines.

“When I heard about the new CBN guidelines, I was impressed because my bank charges me for virtually everything I do, but I have noticed that most times, banks do not adhere to some guidelines, except the ones that favour them,’’ NAN quoted him as saying.

Another customer complained that “her bank did not send a debit alert for the ATM charge, it had, however, reflected in her account.

What the reduction in Bank charges mean

The CBN had said the revised Bank Charges are put in place to “build an inclusive banking system that adequately caters to the needs of the banking public while preserving the financial sustainability of banks, other financial and non-bank financial institutions.”

It will also reduce the cost of banking services to customers and allow them to embrace electronic channels.