Bank Charges in Nigeria Explained: Transfer Fees, ATM Costs, and More

You check your account balance on a Tuesday morning and notice it is ₦200 lower than what you expected. No transfer went out. No bill was due. But the money is gone.

This happens to a lot of Nigerians. Bank charges, debit alerts for fees you do not fully recognise, and small deductions that show up without obvious explanation. Most people do not know what all of them are, which ones are legitimate, and whether some of them can be avoided.

This guide covers the major bank charges in Nigeria — what they are, why they exist, which ones are regulated by the Central Bank of Nigeria (CBN), and how to reduce the amount you pay in fees each month.

What Banks Charge You for in Nigeria

When a bank deducts money from your account for something other than a transfer or withdrawal you initiated, that deduction is typically a service charge. It is the fee the bank applies for providing a service, maintaining your account, or processing a transaction.

Banks are not doing this randomly. The CBN publishes the Guide to Charges by Banks and Other Financial Institutions, which sets the rules for what banks can and cannot charge. The current version was revised in 2026, replacing the 2020 guide, and banks began applying it from May 2026. Some fees are capped. Some are fixed by the regulator. Others are left to individual banks to set within a permitted range.

The challenge for most customers is that these charges are scattered. They show up as small deductions at irregular times, and the descriptions on bank alerts are not always easy to understand.

Common Types of Bank Charges in Nigeria

1. Transfer Charges (Electronic Transfer Fees)

When you send money to another bank using your app, internet banking, or at a branch, a transfer fee applies. These are interbank transfer charges, processed through NIBSS Instant Payment (NIP) or similar electronic channels.

Under the CBN's 2026 Guide to Charges, the caps are:

These are lower than the old 2020 bands (₦10, ₦25 and ₦50), so if your bank is still charging ₦25 on a ₦20,000 transfer, ask why.

Remember that the transfer fee is separate from stamp duty: if you send ₦10,000 or more, a ₦50 government charge is added on top (see section 8 below). So a ₦20,000 interbank transfer typically costs about ₦60 in total.

Transfers within the same bank (intrabank) are usually free.

2. VAT on Bank Charges

Value Added Tax (VAT) at 7.5% is applied to most bank fees in Nigeria. The 2026 tax reform laws kept the rate at 7.5%. It is not a separate bank fee — it is a government tax that banks collect and remit to the Nigeria Revenue Service (NRS), the agency that replaced the Federal Inland Revenue Service (FIRS) in 2026.

So when you pay a transfer fee or another service charge, expect a small VAT deduction alongside it. This is why you sometimes see two separate debit alerts for a single transaction — one for the charge, one for the VAT.

VAT on banking services is legal and non-negotiable.

3. ATM Withdrawal Charges

ATM fees changed on 1 March 2025, and the 2026 guide keeps the same structure:

• Your own bank's ATM: free, including your bank's ATMs at off-site locations like malls and filling stations.
• Another bank's ATM at a bank branch (on-site): ₦100 for every ₦20,000 you withdraw. A ₦40,000 withdrawal costs ₦200.
• Another bank's ATM away from a branch (off-site): the same ₦100 per ₦20,000, plus a surcharge of up to ₦500 per withdrawal. The machine must show you the surcharge before you confirm.

The old rule of three free withdrawals a month at other banks' ATMs no longer applies. Every withdrawal at another bank's machine is now charged.

To reduce ATM fees, use your own bank's ATMs wherever possible, and avoid off-site machines belonging to other banks.

4. Card Maintenance Fee

This one is good news. Under the CBN's 2026 Guide to Charges, banks can no longer charge a monthly maintenance fee on naira debit or credit cards. If you still see a "card maintenance" deduction on a naira card after May 2026, query it with your bank.

What still costs money:

• Card issuance or replacement: up to ₦1,500 for a standard naira debit card (raised from ₦1,000). Virtual cards are free.
• Foreign currency cards: an annual maintenance fee can still apply (the guide allows up to $10 a year).

5. SMS Alert Fee

Banks can still charge for SMS alerts on transactions you make, but only on a cost-recovery basis — in other words, roughly what the bank pays the telecom network to send the message, not a profit-making fee. The charge per message is small, but it adds up if you transact often.

Email alerts are free under the 2026 guide, and most banks send free in-app notifications. If SMS fees bother you, ask your bank to switch you to email or app alerts — but keep at least one form of alert on, so you can spot fraud quickly.

6. Account Maintenance Fee (COT and Monthly Charges)

The old Commission on Turnover (COT) was replaced years ago by a current account maintenance fee (CAMF), charged as a small amount per ₦1,000 of customer-initiated debits.

The 2026 guide caps CAMF at ₦0.50 per ₦1,000 (0.5 per mille) of debits during 2026, and phases it out completely in 2027. Savings accounts do not attract it.

If you operate a current account, you may still see this small monthly deduction until it disappears. Check your bank's tariff to confirm what it applies.

7. USSD Banking Charges

USSD codes — the shortcodes you dial to send money, check your balance, or buy airtime — cost ₦6.98 per session of up to 120 seconds.

Since 3 June 2025, that charge is deducted from your airtime, not your bank account, following a directive from the Nigerian Communications Commission. Your phone will prompt you to accept the charge before the session starts.

If you see a "USSD charge" deducted directly from your bank account after mid-2025, ask your bank to explain it.

8. Stamp Duty

Stamp duty is a government charge, not a bank fee. Under the Nigeria Tax Act 2025, from 1 January 2026, a flat ₦50 is charged on electronic transfers of ₦10,000 or more, and the sender pays it. Before 2026, the receiver paid it.

Transfers below ₦10,000, salary payments, and transfers between your own accounts at the same bank are generally exempt. For the full picture, read our guide to stamp duty on bank transfers.

9. Foreign Currency and International Card Charges

If you hold a naira debit card and use it for foreign currency transactions — online shopping, subscriptions, or payments to foreign services — additional charges may apply. These can include a cross-currency conversion fee and, in some cases, a foreign exchange processing fee.

Banks with dollar cards or multi-currency accounts have different fee structures. If you do a lot of international transactions, it is worth comparing fee structures across banks before choosing which card or account to use.

Why Banks Charge These Fees

It helps to understand the basic logic here, not because it means all the charges are fair, but because it makes the system less confusing.

Banks provide infrastructure. Moving money electronically, maintaining card networks, sending alerts, and operating ATMs all have real costs behind them. Some of those costs are passed on to customers in the form of fees.

The CBN regulates the structure of these charges to prevent banks from exploiting customers. The guides it publishes set limits on what banks can charge, but within those limits, individual banks have some discretion.

The fees also help banks generate revenue outside of interest income, which is especially relevant in periods when interest margins are tighter.

None of this means every charge you see is correct, however. Errors happen. Unauthorized charges happen too. Which is why it matters to know what you are looking at.

Official vs Variable Bank Charges in Nigeria

Some charges in Nigeria are regulated — meaning the CBN sets the exact amount or maximum. Others are permitted within a range, giving banks flexibility. And some charges are left to each bank to decide, subject to disclosure requirements.

Regulated charges include things like electronic transfer fees, ATM charges, and stamp duty. Banks cannot arbitrarily charge more than what the CBN framework permits.

Variable charges include things like monthly account maintenance fees on certain account types. Different banks may structure these differently, which is why the same service can cost slightly different amounts depending on your bank.

The practical implication: if a charge looks unusually high compared to what the CBN framework describes, it is worth questioning. But if a charge falls within the regulated range, the bank is operating within the rules even if the fee feels frustrating.

The CBN's Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions is the reference document. It is publicly available. Your bank is also required to publish its tariff schedule, which is typically available on their website or through customer service.

How to Reduce Bank Charges in Nigeria

You cannot eliminate all bank charges, but you can reduce how much you pay.

Use your own bank's ATM. Your own bank's machines are free. Every withdrawal at another bank's ATM costs at least ₦100 per ₦20,000, and off-site machines can add up to ₦500 more.

Keep transfers within the same bank when possible. Intrabank transfers are usually free or much cheaper. If you send money to family or friends who bank with the same institution, internal transfers save on fees.

Reduce the frequency of transfers of ₦10,000 or more. Each one attracts ₦50 stamp duty plus a transfer fee. One ₦30,000 transfer costs about ₦60; three ₦10,000 transfers cost about ₦180. Small transfers under ₦5,000 are free under the 2026 guide.

Switch to app or email notifications if SMS alerts are costing you. Contact your bank and ask about alternative alert options. Many banks now send notifications through their mobile app at no extra charge.

Understand your account type. Some account types have lower fees than others. A savings account may attract fewer recurring charges than a current account. If you do not need a current account, it is worth confirming whether your existing account type is the most cost-efficient for how you actually use it.

Check your bank's tariff guide. Most people never do this, but your bank is required to publish a full schedule of fees. Reading it once helps you understand exactly what triggers which charges, and whether there are ways to avoid specific ones.

What to Do If You Notice an Unexplained Deduction

If a charge appears on your account that you do not recognise or cannot explain, here is a straightforward approach.

Check your transaction history first. Most bank apps break down deductions with brief descriptions. Some charges — like SMS alert fees or current account maintenance — are deducted monthly and may not trigger a familiar-sounding alert description. Compare the deduction against common charges to see if it matches.

Contact your bank's customer service. Call, chat, or visit a branch. You have the right to ask what a charge is for. Banks are required to explain their fees clearly. Customer service can usually identify the source of any deduction.

Check against your bank's published tariff. Once you know what the charge is called, verify whether the amount matches what the bank's tariff schedule says. If the amount is higher than what the schedule shows, flag it.

Escalate to the CBN Consumer Protection Department if needed. If your bank charged you incorrectly and refuses to reverse it after a formal complaint, you can escalate to the CBN. The CBN Consumer Protection Department handles complaints about banks and financial institutions. Email cpd@cbn.gov.ng or write to any CBN branch, and include your bank's complaint reference number. The CBN expects you to give your bank about two weeks to resolve the complaint first.

Keep records. Screenshots of your transaction history, reference numbers from customer service calls, and any written responses from your bank all help if you need to escalate.

Frequently Asked Questions

Are bank charges in Nigeria regulated? Yes. The Central Bank of Nigeria publishes a guide that sets limits on what banks can charge for various services. Banks are not allowed to charge arbitrarily — they operate within a framework. However, some charges are left to banks to determine within a permitted range.

Why did my bank deduct money without sending me a transfer alert? Some charges — such as SMS alert fees or current account maintenance fees — are processed as internal deductions and may not trigger the same kind of alert as an outgoing transfer. Check your transaction history in your app or online banking to see all debit entries.

Can I ask my bank to waive charges? Some banks may waive or reduce certain charges in specific circumstances, especially for high-value customers or under certain account types. It is worth asking, but there is no guarantee. Fixed regulatory charges cannot be waived.

Does VAT apply to all bank charges in Nigeria? VAT at 7.5% applies to most bank charges. It is not a bank fee — it is a government tax that banks collect on behalf of the Nigeria Revenue Service (formerly FIRS). You will typically see it as a separate small deduction alongside the main charge.

What is the difference between a charge on a savings account and a current account? Savings accounts do not attract the current account maintenance fee. Current accounts can be charged up to ₦0.50 per ₦1,000 of debits in 2026, and that fee is scheduled to end in 2027.

What should I do if my bank charged me incorrectly? Start with your bank's customer service. Make a formal complaint, reference the charge, and ask for a reversal if it was an error. If the bank does not resolve it satisfactorily, you can escalate to the CBN's Consumer Protection Department.

Is stamp duty still charged when I receive money? Not since 1 January 2026. The ₦50 stamp duty on electronic transfers of ₦10,000 or more is now paid by the sender. If you are charged stamp duty for money you received in 2026, ask your bank to check it.

Why do ATM charges differ depending on the machine I use? Your own bank's ATM is free. Another bank's ATM charges ₦100 per ₦20,000 withdrawn, because the transaction goes through an interbank network. Off-site machines belonging to other banks can add a surcharge of up to ₦500, which must be shown on screen before you confirm.

Conclusion

Bank charges in Nigeria are not random. Most of them exist within a framework set by the CBN, and your bank is required to publish what it charges. The problem for most people is not that the charges are hidden — it is that they are unfamiliar, scattered across time, and never fully explained in a single place.

Understanding what each charge is, what triggers it, and what the regulated limits are puts you in a better position to manage them. You may not be able to eliminate bank charges entirely, but you can reduce how often they apply and how much they cost you.

If a deduction ever looks wrong or unfamiliar, do not ignore it. Ask your bank. Check the tariff. And if necessary, escalate through the right channels.