Monday, April 20, 2026

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If there’s no money at the time of the failed transaction, the charges will be withdrawn from the account whenever it is funded.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If there’s no money at the time of the failed transaction, the charge will be withdrawn from the account whenever it is funded, IBTC said.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

Flood-ravaged Kaduna community

NationWide

Nigeria’s Weather Advisory: NiMet forecasts rainfall, sunshine nationwide

The Nigerian Meteorological Agency has predicted rainy and sunny weather nationwide from Monday to Wednesday.

President Bola Tinubu

Politics

North-West APC vows massive votes for Tinubu, adopts ‘campaign of facts’

The position was noted in a communiqué issued after the zone’s maiden meeting, held at its zonal secretariat in Kaduna.

FRSC personnel on highway

States

FRSC urges motorists to reduce speeding during rainfall

The FRSC appealed to motorists to apply “common-sense speed limits by reducing their speed below the posted limit when it rains”.

dreaded cultists

States

Four alleged Ogun cultists nabbed for armed robbery: Police

The police command in Ogun has arrested four suspected cultists for armed robbery.

States

Ferry passengers kidnapped on Calabar-Oron waterways yet to be rescued: Police

The passenger ferry, loaded in Calabar, was travelling to Oron in Akwa Ibom.

States

Bandits kill five soldiers in fresh attack on Kwara community

In a midnight raid, bandits attacked Kemanji village in the Kaiama council area of Kwara, killing at least five soldiers.