The Central Bank of Nigeria (CBN) has unveiled a draft of its revised Guide to Charges for banks and other financial institutions, introducing caps on fees and stricter disclosure requirements aimed at improving transparency, consumer protection and efficiency in the financial system.

In the document titled ‘Guide to Charges by Banks and Other Financial Institutions, 2026,’ and signed by the Director of Financial Policy and Regulation Department, Dr. Rita Sike, the apex bank said the updated framework reflects a broader policy shift towards a more transparent and consumer-friendly banking environment.

Noting that it reviewed the 2020 guide to align with current realities and evolving financial services, the CBN stated that the guide provides a uniform basis for applying charges across financial institutions, adding that it was developed after extensive consultations with stakeholders to enhance flexibility, standardisation, transparency and competition.

It stated that where charges are negotiable, banks must inform customers upfront and ensure agreements are properly documented.

The CBN noted that customers “should be made aware of their right to negotiate charges, while any agreed fees must stay within approved limits.”

A major highlight of the revised guide is the introduction and standardisation of caps across key banking services. For electronic funds transfers, interbank transactions are capped at N10 for transfers between N5,000 and N50,000, while transactions above N50,000 attract a maximum of N50, and transfers below N5,000 remain free.

Similarly, ATM withdrawal charges have been standardised. Customers withdrawing from another bank’s ATM are to pay N100 per N20,000 on on-site machines, while off-site withdrawals attract an additional surcharge of up to N500 per N20,000, which must be disclosed at the point of transaction.

The guide also caps merchant service charges at 0.5 per cent per transaction, subject to a maximum of N10,000, with the cost borne by merchants rather than customers, reinforcing efforts to reduce the cost of digital payments.

On lending, the apex bank tightened disclosure requirements by mandating that all interest rates and fees on loans be presented as an Annual Percentage Rate.

It stated that “all interest or lending rates, inclusive of all applicable fees, shall be quoted and communicated to customers strictly on an Annual Percentage Rate basis,” a move aimed at eliminating hidden charges and improving transparency for borrowers.

The CBN further directed that financial institutions must notify customers in advance of any changes to agreed lending rates, while maintaining that rates remain negotiable but should reflect risk-based pricing anchored on the Monetary Policy Rate.

The apex bank also retained limits on certain account services charges and reinforced consumer protection measures, while placing responsibility on financial institutions’ management to ensure strict compliance with the new framework.
The regulator noted that the guide is not exhaustive and that any new product, service or charge not covered must receive prior approval before being introduced.

It added that the provisions should be read alongside its consumer protection regulations and guidance notes to ensure full compliance.

The revised guide, which replaces the 2020 version, signals a significant shift in the structure of banking charges in Nigeria, with stronger emphasis on transparency, accountability and customer rights.