The Central Bank of Nigeria has introduced a draft guideline aimed at reducing banking charges and making loan costs clearer for customers.
Details of the proposal were contained in a circular, which announced a new document titled “Guide to Charges by Banks and Other Financial Institutions, 2026.”
Under the proposed changes, limits have been set on electronic transfer fees. Transfers between N5,000 and N50,000 will not attract more than N10, while any transfer above N50,000 will be capped at N50.
ATM withdrawal fees were also adjusted. Customers using another bank’s ATM at the bank’s premises will pay N100 for every N20,000 withdrawn. For off-site machines, an extra charge of up to N500 per N20,000 may apply. Withdrawals from a customer’s own bank ATM are not affected by the new changes.
The guideline also places a cap on merchant service charges at 0.5 per cent per transaction, with a maximum charge of N10,000. This is expected to reduce the cost of digital payments for businesses and customers.
The apex bank explained that the current guide issued in 2020 has been updated to reflect present conditions in the financial sector, while also creating room for new ideas and holding institutions accountable for their actions.
In addition, the CBN directed that all lending costs must be clearly stated using the Annual Percentage Rate system.
This means banks and financial institutions will be required to show the full cost of loans, including interest and all other fees, in a single figure to help customers better understand what they are paying.
