Monday, July 13, 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If there’s no money at the time of the failed transaction, the charges will be withdrawn from the account whenever it is funded.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If there’s no money at the time of the failed transaction, the charge will be withdrawn from the account whenever it is funded, IBTC said.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.”

Police on stop-and-search

States

Police detain suspect over illegal possession of firearm in Enugu

The police said a concealed locally made double-barrelled pistol was found in the suspect’s possession during a search.

David Mark

Politics

Appeal Court upholds judgment barring INEC from recognising Mark-led ADC congresses

Justice Mohammed held that the case that precipitated the restraining order bordered on a non-justiciable internal affair of a political party.

Sealed filling station

Heading 5

NMDPRA seals Mobil, Mangerborn Energy in Ogun for under-dispensing fuel

Mr Adebowale stated that the action became necessary due to repeated breaches of regulatory requirements by the affected filling stations.

ADC logo

Politics

Court adjourns Sokoto ADC leadership suit until July 22

The judge consequently adjourned the matter to July 22 and ordered counsel for the first defendant to pay a fine of ₦500,000 to the court.

Abuja

FCT’s Tungan Madaki-Zuba road corridor will boost investment, says Tinubu

Mr Tinubu said that Tungan Madaki, Zuba, and the communities along the road corridor are home to some of Nigeria’s hardest-working citizens.

Federal Mortgage Bank

NationWide

FMBN reaffirms commitment to affordable housing access

Mr Osidi said the bank was prepared to provide guidance on affordable housing and on-site National Housing Fund (NHF) services.