There are more than 10 bank charges in Nigeria. These bank charges are applied to anyone using bank (either traditional or neobank) in Nigeria. Some popular bank charges are:
- Account Maintenance Fee
- Electronic Funds Transfer Charges (NIP/NEFT)
- ATM Withdrawal Charges (Other Banks)
- Card Maintenance Fee
- ATM Card Replacement Fee
- SMS Alert Charges
- Stamp Duty Charges
- Cheque Book Issuance Fee
- Cheque Processing Fee
- Loan Management Fee
- Loan Commitment Fee
- Early Loan Liquidation Fee
- Hardware Token Fee
- Online Banking Transaction Charges
- International Transaction Charges
- Inward Foreign Transfer Charges
- Unfunded Mandate Return Fee
- POS Transaction Charges
These bank charges have different fee ranging from lowest which is N10 to as high as N5000 in some banks. For instance, Electronic Transfers (NIBSS Instant Payment / NEFT) charges can be as low as N10 per transaction, while Inward Foreign Transfer charges can be as high as ₦5,000+ depending on the amount. Some banks may charge percent per transaction; typically 2%–3.5% per transaction.
However, it's important to note that these bank charges add up faster than you can imagine. This is the main reason this article is created to guide you through how to manage your charges and stop losing money to it in Nigeria.
How to Avoid Excessive Bank Charges in Nigeria
Bank charges in Nigeria—whether it’s ₦10 for transfers, ₦50 for withdrawals, or fees for SMS alerts—can quickly add up without you noticing. From ATM fees to maintenance charges, your money can quietly slip away. However, with a few smart habits, you can minimize these costs and keep more of your hard-earned cash to yourself.
Use More of Mobile and Online Banking
Many banks have zero to low transfer fees especially when you're sending money to an account in the same banking system. Some banks like OPAY also offer three (3) fee-free transactions to other banks per day.
You can accumulate all your outward daily transfer into three and make sure they don't exceed three so that you'll not per electronic fee on additional transfers you make to other banks.
Bank apps and internet banking are much more cheaper than ATM or in-branch transactions. Some apps even provide discounts for certain types of transfers, like sending money within the same bank or making bulk payments.
In a nutshell, to cut down on costs and save time, consider grouping your payments and handling them in a single session through your banking app or internet/online banking.
Stop Using OTC Transfer
To actually cut cost on your bank charges, you need to stop using Over The Counter (OTC) transaction—which is also known as bank teller services or bank hail services. Banking hall transactions like deposits, cheque processing, or withdrawals at the counter can attract extra charges.
Instead, opt for ATM deposits or use your bank’s mobile app to handle deposits whenever possible. If available, take advantage of cardless ATM deposit options, which are usually quicker and more cost-effective.
Turn Off Paid SMS
Banks in NIgeria charge of ₦4 to ₦10 per SMS. That may not seem much until you’re hit with a ₦1000 charge at month-end especially if you're a heavy users. In fact, it's worth noting that there's an unresolved dispute between Bank and telecom companies on who is going to be bearing the bank USSD service charges. Now, they're also shifting the fee to back to customers, adding to the SMS charges that'll be charged per month. So, more fees are still coming.
Here are some recent stories regarding the issue:
Many banks customers like OPAY have already been charged directly for their USSD banking services. It usually ranges from N10 to N20 depending on bank. It's also worth noting that OPAY charge fee per attempt on the dial of USSD short code. Even if the attempt didn't go through, the N10 fee will be deducted from your OPAY balance. This is why you should also avoid USSD transactions at these time.
Instead of using paid SMS or USSD service that now incurs for N10 charges, switch to free email notifications through your account settings. Many banks also provide bundled SMS alerts to help cut down on fees.
You can also log into your online banking platform to manage your alert preferences—turning off SMS alerts usually takes just a few minutes.
To replace USSD service, it's wise to rely more on mobile and internet banking for updates and transactions to avoid unnecessary charges.
Game the Stamp DUTY
The Central Bank of Nigeria (CBN) imposes a ₦50 stamp duty on deposits and electronic payments exceeding ₦10,000 into bank accounts. However, it’s important to understand which of your transactions fall under this rule to avoid unnecessary fees.
For personal transactions, some people try to bypass this charge by breaking large payments into smaller ones below the ₦10,000 threshold. While this may seem like a smart move, it’s essential to consider whether the additional transfer fees from multiple transactions outweigh the potential savings.
So, it's wise to avoid excessive splitting; find a balance between minimizing costs and keeping your banking simple and efficient.
Final Note
If you follow these steps closely, you will easily cut cost on your bank charges in Nigeria. Banks are playing smart to make more money through customers' charges, it's wise to also play smart to reduce these charges. It's worth noting that some heavy duty customers bear up to N5000 in bank charges per month.
Lastly, follow CBN by visiting www.cbn.gov.ng to keep track of new banking directives that involves bank charges, how it affects banks and how it affect you as a bank customer.
