CBN Caps Bank Charges, Tightens Transparency Rules in Draft Guide
The Central Bank of Nigeria (CBN) has introduced caps on banking charges and stricter disclosure requirements in a draft of its revised Guide to Charges by Banks and Other Financial Institutions, 2026, signalling a major shift toward consumer protection and cost transparency in the financial system.
In a circular dated April 21, 2026, signed by Rita Sike, the apex bank said the revised framework is designed to strengthen financial stability, deepen inclusion, and accelerate the adoption of digital financial services.
The new guide updates the 2020 version, reflecting evolving market conditions and the regulator’s push for a more transparent and innovation-driven banking environment.
Under the proposed framework, the CBN has introduced structured caps across key banking services. Electronic transfers between N5,000 and N50,000 will attract a maximum fee of N10, while transactions above N50,000 are capped at N50. Transfers below N5,000 remain free, reinforcing the push toward low-value digital payments.
ATM withdrawal fees have also been standardised. Customers using another bank’s ATM will pay N100 per N20,000 on on-site machines, while off-site withdrawals attract the same N100 fee plus a surcharge of up to N500 per N20,000.
Merchant service charges are capped at 0.5 per cent per transaction, subject to a maximum of N10,000, a move aimed at reducing the cost burden on businesses and encouraging wider adoption of electronic payments.
Beyond transaction charges, the CBN is tightening lending transparency by mandating that all borrowing costs be disclosed using the Annual Percentage Rate framework. This requires banks to present interest rates inclusive of all fees, ensuring customers have a clear view of the true cost of credit.
While the framework allows certain charges to remain negotiable, the regulator has set clear boundaries. Financial institutions must inform customers of their right to negotiate and ensure that agreed fees do not exceed prescribed limits.
The draft has been opened for public consultation, with stakeholders given until May 8, 2026, to submit feedback before final adoption.
The revised guide represents a significant recalibration of Nigeria’s banking fee structure, with a stronger emphasis on standardisation, transparency, and consumer protection, as the CBN seeks to balance innovation with regulatory oversight in an increasingly digital financial ecosystem.
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