The Central Bank of Nigeria (CBN) has instructed banks and other financial institutions to begin submitting monthly reports detailing unsuccessful electronic transactions across all digital platforms, as part of new compliance rules introduced in its updated Guide to Charges.
This directive was outlined in a circular dated April 21, 2026, titled “Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026 (The Guide)” and signed by the Director of the Financial Policy and Regulation Department, Dr Rita Sike.
Under the new requirement, Chief Compliance Officers and Heads of Information Technology in financial institutions are expected to jointly compile and submit electronic reports covering failed transactions processed through Automated Teller Machines, Point of Sale terminals, mobile banking channels, web platforms, and other digital systems.
The circular read, “The Chief Compliance Officer and Head Information Technology shall jointly render monthly reports electronically, of all failed electronic transactions via various e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminate in the institution.”
These reports are to be forwarded to designated CBN email addresses, as the regulator intensifies oversight of service disruptions within the banking sector.
In addition to the reporting obligation, the apex bank has introduced wider accountability measures, placing responsibility on senior management to ensure full compliance with the revised framework.
Managing Directors or Executive Compliance Officers are required to drive adherence across all operational units and ensure that banking systems apply only approved charges.
The regulator specifically directed that Heads of Information Technology must ensure that “all systems configurations only capture and allow posting of charges as permitted and described in this Guide,” while Chief Compliance Officers are tasked with monitoring compliance.
The revised Guide, scheduled to take effect on May 1, 2026, replaces the 2020 edition and establishes an updated framework governing charges across banking and financial services.
According to the CBN, the review is designed to enhance financial system stability, support innovation, and promote financial inclusion by reducing tariffs on micropayments and similar transactions.
The regulator noted that the framework would improve monitoring and accountability, encourage greater use of electronic payment channels, and accommodate emerging players within the financial ecosystem.
A notable component of the draft is the introduction of caps on several banking fees, alongside provisions requiring banks to clearly disclose charges and allow customers to negotiate fees where applicable.
The document also states that where charges are negotiable, institutions must notify customers of their right to negotiate and reach agreements through verifiable means.
Furthermore, any new product, service, or charge not covered under the Guide must obtain prior written approval from the CBN, tightening control over fee-related innovations.
The revised structure applies to a broad range of financial institutions, including commercial and merchant banks, payment service banks, non-interest banks, microfinance banks, finance companies, primary mortgage banks, development finance institutions, credit guarantee firms, and mobile money operators.
To strengthen consumer protection, the CBN directed that non-credit-related charges can only be applied where sufficient funds exist in a customer’s account, with unpaid charges deferred without attracting interest.
The draft also reinforces compliance obligations, requiring senior management and compliance teams to ensure that only authorised charges are implemented across banking systems.
Within the detailed schedule, the CBN set limits on charges for various services. For electronic transfers, interbank fees are pegged at zero for transactions up to N5,000, N10 for transactions between N5,000 and N50,000, and N50 for transactions above N50,000.
Charges for ATM withdrawals from other banks were also specified, with N100 charged per N20,000 withdrawal on on-site machines, alongside capped surcharges for off-site transactions.
The Guide retains zero fees on several customer services, including account reactivation, account closure, and compulsory monthly statements, while setting limits on others such as third-party statement requests and card issuance.
In the lending segment, financial institutions are required to present loan pricing using the Annual Percentage Rate to ensure transparency in the total cost of borrowing. Penalties on loan defaults are capped at one per cent per month for naira-denominated loans and 0.25 per cent for foreign currency loans.
The regulator also outlined minimum disclosure standards for loan agreements, covering borrower details, loan purpose, repayment terms, collateral, interest rates, and applicable penalties, to improve transparency in credit transactions.
The draft has been released for stakeholder input, with comments expected to be submitted to the CBN on or before May 8, 2026, ahead of full implementation.
Recall that in October 2025, the apex bank directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, as part of efforts to strengthen consumer protection and boost confidence in the banking system.
(PUNCH)
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