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•Finance experts, others say excessive bank charges crippling businesses, pushing millions into poverty
•What CBN, FCCPC must do
From Adanna Nnamani, Abuja, Ngozi Nwoke and Merit Ibe, Lagos
Economic experts have raised the alarm over rising bank charges, which they warn, are worsening inflation, crippling small businesses and pushing more Nigerians into poverty.
Also, corporate and individual banking customers across Nigeria have continued to express frustration over what they describe as multiple and excessive charges imposed by banks. From ATM withdrawals to debit card renewals and maintenance fees, many say they are being short-changed through a growing list of deductions that erode their savings.
These charges, which come under various labels such as management fees, processing fees, interest charges, commission on turnover, card and account maintenance fees, as well as alert and ATM usage fees, have become a heavy burden for customers—especially small and medium-sized enterprises (SMEs) and low-income earners. Stakeholders warn that these excessive fees are worsening inflation, raising operational costs for businesses, and increasing the cost of doing business in the country.
Frustrated customers are now migrating to fintech platforms like Opay, PalmPay, and Moniepoint, which they say offer more affordable and transparent services. From electronic transfer fees to account maintenance and ATM charges, Nigerians are losing billions monthly to deductions that experts describe as economic sabotage. Recent figures show that transfer charges alone shared among the Federal, State and Local Governments in September amounted to over N170 billion. This raised fresh concerns about how much is being drained from citizens’ accounts.
‘Charges a menace to businesses, households’
Former Director-General of the Abuja Chamber of Commerce and Industry (ACCI), Dr. Chijioke Ekechukwu, said the charges have become a menace to businesses and households.
According to Ekechukwu, the deductions account for why many banks continue to declare mega profits despite barely giving out loans to help businesses. He therefore urged the Central Bank of Nigeria (CBN) to step in and rescue citizens from the clutches of numerous bank levies.
The expert said: “Bank charges have become a major nuisance and menace in businesses in Nigeria.
“Banking should be all about intermediation in excess money flow and in deficit money flow. Every bank can make enough income from performing the foregoing function of intermediation. This is by receiving money and giving out money through loans.
“The level of charges today is such that banks can continue to declare so much profit even if they don’t give out any loans. The effect of this is that businesses and customers lose a lot of money through these listed charges. These deductions deplete their income by increasing their cost of doing business.
“For individuals, it reduces their disposable income and depletes the amount available for use by their families. “CBN indeed needs to ensure all these charges are removed and banned. Banks should be allowed to do banking, and not tax collection in another guise.
”We have been complaining about multiple taxation in doing business in Nigeria. The deduction by banks constitutes up to 50 per cent of these multiple payments by businesses, and this should stop, and the time is now.”
Similarly, Economic and development expert, Dr Aliyu Ilias, said both the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) have failed to adequately protect customers from excessive deductions.
Ilias warned that the cumulative effect of these deductions feeds inflation, raises the cost of goods and services, and reduces purchasing power, especially among low-income earners.
He urged the CBN to review bank fee policies and ensure banks focus more on lending and real economic growth rather than profit from endless charges.
“I think the Federal Competition and Consumer Protection Commission (FCCPC) needs to do more, and the Central Bank of Nigeria (CBN) must step in to check these unnecessary deductions that keep happening in our accounts. If you are not paying for an ATM, you are paying for transfer; if not transfer, then something else. At one point, several banks were even advising their customers to use their apps instead because the telecoms were said to be reducing customers’ money.
“These deductions reduce the disposable income of Nigerians. They leave people with very little to spend because the more the deductions, the harder it hits citizens. Now, is it justified? When you compare it with what happens in other countries, it’s clearly not. The charges could be made quarterly instead of monthly, which would reduce the burden, because when you look at the cumulative amount being taken, it is not small at all.
“The best thing is for the government to introduce clear regulations and effective oversight on banks and telecoms regarding how much they deduct. That is why many people are now turning to online banks, because conventional banks seem to be charging far more than necessary,” he stated.
Another economist, Alpha Jackden, described the incessant charges as insensitive. Jackden said the government should reconsider its decisions owing to the economic hardship citizens are facing. He said the deductions are contributing to inflation. He said: “This goes to show the insensitivity of the government. Taking a cue from the question, the poverty rate in Nigeria today is rather very alarming. Alarming in the sense that we have never come this far.
“And if you look at some of the deductions as far as bank charges and what have you are concerned, there is no gainsaying that that is only accelerating inflation and what comes with it.
“As it is today, if you look at the value of the Naira, the value of the Naira can afford you very little. “In fact, I will use this opportunity to say the only way that we can actually get things back to stance is to see if as a people we start talking about how we can engender the strength of the Naira vis-a-vis the dollar.
“The bottom line remains the government should do all it can to see to it that the welfare of its citizens is not hampered by these charges that to a large extent is only enhancing the pulse of the government at the detriment of the poor masses.
“I can use myself as an example. Some of the bank charges that I have encountered of late are such that I find very alarming. The particular bank I use, once you initiate a transaction, even if the transaction does not go through, you have been deducted.
“At the end of the month, the month before last, I was deducted close to 2,000 Naira and they called it bank charges, they called it all manner of names.
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“The bottom line is that this is impacting on me negatively. Last month too, these charges were there. “My family members are also complaining. Now by the time you keep deducting from all bank accounts, be they current bank accounts, the government is only smiling home.
“But the people are further being impoverished and hence I wish to call on government to please reconsider its stance as far as these bank charges are concerned.
“The bottom line is that yes, the banks are there to play their role as far as the economy is concerned, but the same bank should not be used to further deflate the people economically. That is my clear and cold.”
‘Bank charges causing death of small businesses’
Chairperson of the Nigerian Association of Small Scale Industrialists (NASSI), Lagos, Gertrude Akhimien, described bank charges as the bane of many business owners, noting that they wipe out profits and pile up financial pressure on entrepreneurs.
“It’s a shame that while MSMEs are burdened with debts and excessive bank charges, banks are declaring billions in profits from these same deductions,” she lamented. Fintech banks are now the preferred alternative because of their MSME-friendly digital services.” She called on the government to intervene and relieve small businesses of the burden of bank charges and other challenges threatening their survival.
Similarly, Daniel Dickson-Okezie, CEO of Zevland Ventures Ltd and member of the Lagos Chamber of Commerce and Industry (LCCI), described the situation as deeply worrisome, questioning the logic behind card maintenance fees.
“What exactly is being maintained? The ATM card is in your pocket. So, what does card maintenance mean?” he queried, calling the practice exploitative and opaque.
He urged the government to urgently intervene and enforce transparency in the banking sector.
Also speaking, Chukwuma Onyeka, CEO of Levi Drugs, said the cumulative cost of transaction and maintenance charges makes banking services unaffordable for low-income individuals and small traders.
However, David Etim, Project Implementation Lead at Calabar and Gulf of Guinea Municipal and Trade Centre Ltd/Gte, noted that while small businesses can easily migrate to fintech platforms, large corporations cannot do so due to the scale of their operations.
“Big companies, unlike smaller traders, negotiate charges with banks based on transaction volume. A company doing N300 billion daily turnover won’t pay the same rates as someone doing N100 million.”
Etim emphasised that both banks and fintechs must remain profitable to sustain operations, noting that there’s no such thing as free service.
He also pointed out that part of the charges deducted by banks include statutory taxes such as VAT, withholding tax, and stamp duties, which are remitted to the Federal Inland Revenue Service (FIRS). The real issue, he argued, is not how much the government collects but how effectively those funds are utilised.
Etim urged citizens to demand accountability from their local and state governments to ensure that revenues—such as the ₦170 billion recently shared—are used to improve infrastructure and public welfare.
“Citizens must wake up to their oversight role,” he said. “If local governments used their share to maintain rural roads, support farmers, or provide cold storage for produce, everyone would feel the benefit. The problem isn’t collection—it’s utilisation.” The stakeholders agreed that unless the government enforces transparency and reduces the cost burden on customers, more Nigerians will continue to abandon traditional banks for digital alternatives.
Average Nigerians groan
Mrs Oluwatoyin Joseph, a food vendor, expressed frustration with the charges, saying, “I’m tired of paying N200 to N500 monthly for bank charges. It’s eating into my profit margins. I wish there was a way to avoid these charges altogether.”
Ade Yusuf, a biscuit wholesaler, shared his experience, stating: “My bank charges me N10,000 annually for account maintenance. It’s a significant amount for a small business like mine. I’m considering switching to a fintech with zero or lower charges,” she stated.
Nneoma Adigwe, an online vendor, noted: “The bank charges are excessive. I’ve had to factor them into my pricing, which affects my competitiveness. I wish the government would regulate these charges.”
Meanwhile some small business owners are taking steps to minimise bank charges. Many have said they are considering switching to fintech banks like Palmpay, Opay, which offers zero-charge transfers.
Business owners are exploring alternative payment methods, such as mobile money services, to reduce transaction costs. Chinedu Eke noted that the government should reduce bank charges by at least 50 per cent. “The charges are too high, and it’s affecting our savings. The government should intervene to protect Nigerians.”
Funmilayo Adeniyi said the government should abolish some charges altogether. “If the government can waive some charges, it will help Nigerians breathe easier. The cost of living is already high.”
Another Nigerian, Ojo Olofintila suggested a more transparent approach to bank charges. “The banks should be transparent about their charges. If the government can ensure transparency, it will build trust between banks and customers.”
