As banks bask in record-breaking profits, millions of frustrated customers are left reeling under the agony of unexplained deductions and hidden charges, exposing a cruel paradox in the financial sector, writes Festus Akanbi
As Nigerian banks continue to count their blessings for a mouth-watering performance in the first quarter of the year, their customers on the other hand, are gripped by seething outrage as they decry the relentless assault on their hard-earned money through a ruthless surge in unjustified bank charges, deductions, fees, and commissions, feeling trapped in a cycle of exploitation.
Today, Nigerians have no choice but to entrust their money to the towering fortresses of banks, gleaming structures where fortunes grow for a privileged few while the masses are bled dry.
Like ravenous predators, these banks lurk in polished lobbies, waiting to pounce with endless charges—SMS fees, card maintenance, transfer levies, each deduction a sharp claw scraping at meagre savings.
And as the cycle of excessive charges continues and dreams wither, the poor are pushed further into the abyss of poverty, their hard-earned naira transformed into profits for smiling executives, while they are left clutching shadows.
Ironically, while the customers are complaining, it is time for a celebration in the various bank boardrooms where the superlative performance for the year’s first quarter is being celebrated.
10 Banks Generate N1.45tn from E-banking, Others in Q1 2025
A THISDAY analysis of banks’ performance last week showed that amid the threat posed by Fintech companies’ aggressiveness with zero charges on customers’ deposits and transfers, a total of 10 Nigerian banks generated N1.45 trillion from electronic-banking charges, account maintenance fees, among other charges imposed on customers in the first quarter (Q1) ended March 2025.
This is an increase of 104.5 per cent from N710.05 billion reported in the first quarter ended March 2024.
The 10 banks: United Bank for Africa Plc (UBA), Access Holdings Plc, Ecobank Transnational Incorporated (ETI), Guaranty Trust Holding Company Plc (GTCO) and FBN Holdings Plc. Others are: Stanbic IBTC Holdings Plc, Fidelity Bank Plc, FCMB Group Plc, and Wema Bank Plc.
These 10 banks generated a significant increase in fees and commissions on the backdrop of growth in customer base.
Nigerian banks are competing with Fintech companies such as MoMo Payment Service Bank (MoMo PSB), a Fintech subsidiary of MTN Nigeria. Airtel SmartCash, Opay, Palmpay, and others charge customers zero charges on fund transfers to another Fintech company or bank.
The current outcry from bank depositors came on the heels of the latest increase in bank charges.
Banks, including GTBank, Fidelity Bank, Globus Bank, and Ecobank, have already notified their customers of the adjustment, attributing the increase to higher tariffs imposed by telecoms operators. More banks are expected to implement similar changes in the coming days.
In a message entitled ‘Important Update on the Charges of SMS Transaction Alerts,’ Fidelity Bank explained: “Due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts have been revised from N4 to N6 per SMS effective today, May 1, 2025. This adjustment is necessary to ensure we continue delivering secure, timely, and reliable transaction notifications to you.”
GTBank issued a similar notice, informing customers of the new rates and emphasising the importance of SMS alerts in monitoring account activity. However, the bank also provided an opt-out option, directing customers who prefer not to receive SMS alerts to update their preferences via its website.
Reacting to the new charges, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, said the hike was expected due to changes in telecoms regulations and tariffs. Still, he criticised the banks for transferring the entire burden to customers.
“Banks remain among the most profitable sectors in Nigeria, even in tough economic times. Given that, they should show more empathy and be willing to absorb some of these rising costs instead of pushing them entirely to consumers,” Yusuf said.
Similarly, Ayodele Akinwunmi, Senior Relationship Manager at FSDH Merchant Bank, clarified that the fee adjustment originated from the telecoms sector and not from the banks themselves.
“The banks are simply relaying the impact of new telecom charges. These SMS alerts are transmitted via telecom networks, using the phone numbers customers provided. The Central Bank mandates that banks must inform customers of account activities through SMS or email,” he explained.
The increase in SMS alert fees raises concerns about customer impact, especially among low-income earners and small businesses. These groups often rely on instant notifications for security and budgeting. Frequent transactions could now translate into significantly higher monthly charges, pushing some to disable alerts entirely to avoid rising costs.
The SMS alert system allows customers to receive real-time notifications of activities on their accounts, helping them monitor any unauthorised or suspicious transactions. Customers who no longer wish to receive transaction notifications via SMS are allowed to opt-out.
“If you prefer not to receive transaction alerts via SMS, you can update your preferences by completing the transaction alert form on our website and sending it to gtbankmailsupport@gtbank.com,” the notification read.
Court Option
But as bank customers continue to sulk over the development, a former president of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Okechukwu Unegbu, said all hope is not lost as any aggrieved customers can approach the courts if they observe irregular deductions from their accounts.
Unegbu spoke against the backdrop of complaints by bank customers on unexplained, multiple deductions from their accounts. According to him, the best thing is for customers to initiate court cases against such banks, even while accepting that the justice system is slow.
He noted that the banks make millions of naira by deducting from their customers N5 or N10 per transaction but people see it as small, so they just ignore it.
“When you consider that they have millions of customers that they take such charges from, you will know that it is a lot of money for them,” he said. He said that there were Central Bank of Nigeria (CBN) guidelines on bank charges, urging customers to take cognisance of the document and seek redress when they received charges outside the guidelines.
“That document explicitly states the legal charges that banks are entitled to from their customers.
“But most Nigerian banks charge much more than what is recommended, which is against all principles of banking. Such things do not happen abroad. And the problem is that most customers do not complain.
“If customers get such charges, they should start by writing to the banks to complain. Going to the bank physically might not yield any positive results. “If customers can develop the habit of complaining, the banks will start learning,” he said.
He said that the CBN had a complaint desk for such issues, adding that the desk appears not to be very effective.
According to the CBN guidelines, transactions below N5,000 will incur a maximum fee of N10; transfers between N5,000 and N50,000 will attract a charge of N25; and transfers beyond N50,000 will incur a charge of N50.
The guidelines state that account card maintenance costs have been eliminated because the accounts already have maintenance fees. Savings accounts will be charged a card maintenance cost of N50 every quarter rather than N50 every month.
The apex bank warned that any financial institution that violated any of the terms in the guidelines would be fined two million Naira per violation, or as the CBN may determine from time to time.
The bank advised customers to give deposit money to banks at least two weeks before resolving any issues, failure of which it would intervene.
Between 2012 and 2018, the CBN said it returned N65 billion to bank customers being proceeds, and in 2023, the House of Representatives mandated its Committee on Banking and Currency to investigate the issue of excess charges and illegal deductions by commercial banks in Nigeria.
This was a sequel to a motion by a member from Cross River state, Mr. Godwin Offiong, at plenary.
The lawmaker stated that some Banks and Financial Institutions in Nigeria indulge in the unethical practice of fleecing their customers through excessive charges and unauthorised deductions.
According to him, customers of different Commercial Banks are groaning over excessive charges on their accounts, saying the Financial Institutions known as Deposit Money Banks (DMBs) have reportedly introduced different deductions to increase their income.
Festus Akanbi @ThisDay
