The Central Bank of Nigeria (CBN) has released a draft of its revised Guide to Charges by Banks and Other Financial Institutions, 2026, introducing fee caps and stricter disclosure requirements to improve transparency across the banking system.
In a circular dated April 21, 2026, and signed by the Director of the Financial Policy and Regulation Department, Dr. Rita Sike, the apex bank said the updated framework is part of broader efforts to strengthen financial stability, deepen financial inclusion, and accelerate the adoption of digital financial services.
The CBN noted that the revised guide reflects a policy shift toward a more consumer-friendly banking environment, following a review of the 2020 version to align with current economic and technological realities.
According to the circular, the review is aimed at promoting a safe and sound financial system while encouraging innovation and expanding access to financial services, particularly for micropayments and low-value transactions.
Fee caps across key banking services
A major highlight of the proposed guidelines is the introduction of structured caps on charges across several banking services.
For electronic funds transfers, interbank transactions between ₦5,000 and ₦50,000 are capped at ₦10, while transfers above ₦50,000 attract a maximum fee of ₦50. Transactions below ₦5,000 remain free.
ATM withdrawal charges have also been standardised. Customers using another bank’s ATM will pay ₦100 per ₦20,000 on on-site machines, while off-site withdrawals will attract ₦100 plus a surcharge of up to ₦500 per ₦20,000.
In addition, merchant service charges are capped at 0.5 per cent per transaction, subject to a maximum of ₦10,000—reinforcing the regulator’s push to reduce the cost of digital payments.
Mandatory disclosure of lending costs
Beyond transaction fees, the CBN is tightening lending transparency by requiring all loan-related charges to be disclosed using the Annual Percentage Rate (APR) framework.
Under the new rule, all interest and lending rates—inclusive of applicable fees—must be quoted and communicated strictly on an APR basis. The measure is expected to eliminate hidden charges and give borrowers a clearer picture of the true cost of credit.
Negotiable charges within defined limits
While the guide allows certain charges to remain negotiable, it sets clear boundaries. Financial institutions must inform customers of their right to negotiate and ensure that agreed fees do not exceed prescribed maximum thresholds.
Stakeholder consultation ongoing
The CBN has opened the draft for public comments, with stakeholders given until May 8, 2026, to submit feedback through its Policy and Regulation Division.
Once finalised, the revised guide will replace the 2020 version and could take effect from May 1, 2026. The framework marks a significant shift in the structure of banking charges in Nigeria, with stronger emphasis on standardisation, transparency, and consumer protection.
