Sunday, December 7, 2025

Nigerian banks begin charging customers for failed transactions

If there’s no money at the time of the failed transaction, the charges will be withdrawn from the account whenever it is funded.

• November 20, 2020
Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

Nigerian banks have started charging customers for failed transactions, a move that could further compound economic hardship already assailing the masses.

The charges were imposed following a CBN directive earlier this year that directed banks to penalise customers who initiate direct debit transactions on their account but lack funds to complete the transaction.

In an email notice sent out to customers by Stanbic IBTC on Thursday and seen by Peoples Gazette, the penalty of one percent of the amount being transferred or N5000 of such, depending on the highest fee, will be charged against the customer who breach the new guideline.

If there’s no money at the time of the failed transaction, the charge will be withdrawn from the account whenever it is funded, IBTC said.

Direct debit is a standing order initiated by an account holder that enables the bank to debit a specified amount from the customer’s account at an agreed date.

The guide to charges by bank and non-bank financial institutions was created to streamline the application of charges on various products and services offered by banks and other financial institutions in Nigeria to their customers.

This guide came into effect in January, replacing the previous guide that was issued in 2017. The guide was criticised by economists as dangerous and insensitive because most Nigerians cannot afford to continue paying for a service they never received — a criticism the CBN rejected as unfounded.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Soldiers announcing takeover of power in Benin

Hot news Home top

JUST IN: Military coup underway in Benin Republic

The takeover took place after the military had criticised Mr Talon’s government over mismanagement of the country.

Bright Edafe

States

Delta police nab prime suspect in murder of retired judge

Mr Edafe said the suspect was arrested on Saturday in his hideout in neighbouring Anambra.

Fireworks

States

Yuletide: Police ban sale, use of fireworks in Edo

He warned that anyone found selling, buying, or using them would be arrested and prosecuted.

Closed health centre in abuja

Abuja

Wassa IDPs urge AMAC to reopen health centre closed since 2022

She said the closure had worsened families’ economic and health conditions.

People on the streets raising Nigerian flags and phones.

NationWide

Traditional ruler urges Nigerians to preserve cultural heritage

According to him, no nation or tribe can exist without a firm cultural identity.

Sanwo-Olu, Makinde, Sani and Dapo Abiodun

Economy

 Lagos, Kaduna, Oyo, FCT, Ogun top 2025 subnational ease of doing business report  

PEBEC was established in July 2016 by the federal government to oversee Nigeria’s business environment intervention.