Are Nigerian Bank Charges Legal?
Bank charges in Nigeria from ATM fees and account maintenance charges to transfer tariffs and cash handling levies are a common grievance for millions of customers.
Stamp duty is not a bank created charge. It originates from the Stamp Duties Act, a law that has existed since 1939(now Cap S8, Laws of the Federation of Nigeria 2004). Under the Act, certain instruments and transactions attract stamp duty.
The Federal Government has the constitutional authority to collect stamp duties on electronic and corporate transaction.
The CBN’s Regulatory Role on Charges
The CBN does not allow banks to independently decide all fees they Guide to Charges serves as the standard benchmark for permissible charges. Banks must adhere too, the fee structures in this document.
If a bank charges more than what the guide permits, it is considered illegal and customers can complain to the CBN. In fact, the CBN urges customers to report illegal charges they encounter.
The CBN has the power to sanction banks that violate approved fee structures. Penalties for non-compliance can include fines.
Additionally, the CBN’s Consumer Protection Regulations demand fair treatment of consumers — which includes transparent and justified charges.
Charges Are Covered and What They Mean
Under the Guide and related policies:
- ATM & Withdrawal Charges
- ATM cash withdrawals from other banks may incur fixed fees (e.g., ₦100 per ₦20,000)
- The CBN can set conditions tied to the use of ATMs and surcharge limits.
- Cash Handling Fees (Cashless Policy)
- Charges for handling large cash deposits or withdrawals.
- Account Maintenance & Service Charges.
Your Rights as a Bank Customer
You are legally entitled to:
- Transparent disclosure of all charges before you agree to a product or service.
- Negotiate certain fees where the guide labels them as negotiable.
- Challenge or complain to the CBN if you are charged more than the approved tariff.
- Refuse arbitrary charges and escalate breaches through official channels.
The Role of NIBSS(Nigeria Inter Bank Settlement System)
NIBSS is not a tax authority. It is a payment infrastructure company jointly owned by the CBN and Nigerian banks, responsible for interbank transfers and settlement systems (such as NIP). NIBSS made stamp duty enforceable in three key ways:
- Centralized Automation of Stamp Duty Collection
- Human discretion is removed.
- Transparency and Traceability: NIBSS introduced Transaction level traceability Audit trails for every stamp duty deduction to addressed past concerns about, Revenue leakages, Double deduction, Unaccounted remittance
In Conclusion: Stamp duty on electronic banking transactions in Nigeria is not the product of unilateral action by banks or NIBSS. It is a statutory charge rooted in the Stamp Duties Act, clarified by the Finance Acts, and enforced through coordinated regulation.
The Central Bank of Nigeria (CBN) provides the regulatory authority and policy direction, NIBSS supplies the technological infrastructure that enables uniform and transparent collection, while the Federal Government and relevant revenue agencies retain ownership and control of the funds collected. Together, these institutions form a legal and operational framework that ensures stamp duty is applied consistently across the financial system. Although concerns about consumer impact and transparency are legitimate and deserve continued policy attention, they do not undermine the legality of the charge as currently structured.
Ultimately, the stamp duty regime reflects a collective institutional effort to align Nigeria’s digital banking ecosystem with existing fiscal laws.
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