The Central Bank of Nigeria has released a draft guideline aimed at reducing banking charges and improving transparency around the cost of loans and financial services in the country.
The proposal is contained in a circular introducing a new framework titled “Guide to Charges by Banks and Other Financial Institutions, 2026”, which is expected to replace the existing 2020 version once finalized.
According to the draft, the apex bank is seeking to simplify electronic transaction fees and place clear limits on how much customers can be charged across different banking channels.
For electronic transfers, the proposed structure sets a maximum fee of N10 for transactions between N5,000 and N50,000. Transfers above N50,000 will attract a capped fee of N50, a move designed to significantly reduce the cost of everyday digital banking.
The guideline also revises ATM withdrawal charges, especially for customers using other banks’ machines. Under the proposal, withdrawals made at another bank’s ATM located within the bank’s premises will attract a fee of N100 per N20,000 withdrawn.
For off-site ATMs, an additional charge of up to N500 per N20,000 may apply. Withdrawals from a customer’s own bank ATM will remain free under the new framework.
In the area of digital payments and merchant transactions, the CBN has proposed a cap on merchant service charges at 0.5 percent per transaction, with a maximum limit of N10,000.
This adjustment is expected to ease pressure on businesses that rely heavily on electronic payment systems, particularly small and medium-sized enterprises.
Beyond transaction fees, the draft guideline also focuses on lending transparency. The CBN has directed that all lending institutions must adopt the Annual Percentage Rate system when disclosing loan costs.
This means customers will see the full cost of borrowing presented in a single figure that includes interest rates and all associated charges.
The apex bank explained that the update was necessary to reflect current realities in the financial sector, improve accountability, and make banking charges easier for customers to understand.
It noted that the revised framework is also intended to encourage innovation in financial services while ensuring that institutions operate within clearly defined and enforceable limits.
If implemented, the changes could have a broad impact on how Nigerians pay for banking services, particularly in areas such as transfers, ATM usage, and digital payments, where complaints about high charges have remained common.
For now, the document remains in draft form, meaning final adjustments may still be made before it is officially adopted.
