Friday, July 10, 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If there’s no money at the time of the failed transaction, the charges will be withdrawn from the account whenever it is funded.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If there’s no money at the time of the failed transaction, the charge will be withdrawn from the account whenever it is funded, IBTC said.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.”

Edo FRSC

Politics

Edo govt didn’t invite FRSC to participate in LG election: Official

The Federal Road Safety Corps says it will not participate in Saturday’s local government election in Edo because it was not invited.

President Bola Tinubu

Kano

FG executed 70 road projects in Kano in two years: Official

The Federal Ministry of Works says it has executed over 70 road projects in Kano in the last two years.

President Bola Tinubu

States

FG executed 70 road projects in Kano in two years: Official

The Federal Ministry of Works says it has executed over 70 road projects in Kano in the last two years.

Renewed Hope Horse Racing Tournament, West African Derby 2026, in Kaduna

Sport

Etsu Nupe tells Nigerian youths to embrace horse racing

The Etsu Nupe urged Nigerian youths to embrace horse racing, describing it as a treasured cultural heritage deserving preservation for future generations.

Bola Tinubu and Wike

Abuja

Remodelled Abuja City Gate reflects Nigeria’s character, pride, says Tinubu

President Bola Tinubu said on Thursday that the remodelled Abuja City Gate reflects Nigeria’s character and communicates the pride of its people.

Bakalori Irrigation Scheme in Talata Mafara

Agriculture

Birds destroyed 250 hectares of farmland, Zamfara farmers cry out

Farmers have appealed for urgent government intervention after birds invaded their farms and destroyed crops.