By Babajide Komolafe

Beyond transaction-related charges on Current and Savings Accounts, banks are also permitted by the Central Bank of Nigeria, CBN, to charge certain fees that are periodic in nature or tied to specific banking products and services.

These charges are not necessarily incurred daily but arise from customers’ use of electronic banking tools and special services.
One major category relates to ATM cards. The CBN permits banks to charge an ATM card issuance fee of N1,000.

This charge applies regardless of the type of card issued or whether it is linked to a Savings or Current Account. In addition, banks may charge N1,000 for ATM card replacement when a customer requests a new card due to loss or damage.

Similarly, banks are allowed to charge an ATM card renewal fee of N1,000 when a card expires and needs to be replaced. There is also an ATM card maintenance fee of N50 per quarter for cards linked to Savings Accounts. This maintenance fee, however, does not apply to cards linked to Current Accounts.

Another service that attracts charges is the issuance of hardware tokens. These devices are used to generate passwords required to authenticate and complete electronic transactions.

The maximum fee permitted by the CBN for issuing a hardware token is N2,500. The same amount applies if a customer requests a replacement for a lost or damaged token.
While banks are not allowed to charge customers for soft tokens or One-Time Passwords (OTPs), which are usually sent to customers’ phones to confirm transactions, they are permitted to charge for the SMS alerts associated with such services.

The approved charge is N6 per SMS, plus N0.45 as VAT.
With respect to account statements, banks are not permitted to charge customers for the mandatory monthly statement of account. However, when a customer makes a special request for a printed statement, the CBN allows banks to charge N20 per page.

Although there are other fees banks are permitted to charge, most of those related to routine transactions and commonly used banking services have been covered in this series. To avoid unnecessary or excessive charges, customers are advised to consult the CBN’s official publication titled “The Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions,” which provides a comprehensive list of approved banking fees and charges.

Understanding these rules empowers bank customers to make informed decisions and better manage their banking costs.