How To Reduce Bank Charges in Nigeria
Bank charges in Nigeria—from the Electronic Money Transfer Levy (EMTL) to ATM and card maintenance fees—chip away at savings if you’re not deliberate. While some levies (like the EMTL) are statutory, many charges are avoidable or reducible with the right habits and small account-management changes. This guide explains the common deductions and gives focused, practical ways to reduce what you pay.
Charges You Cannot Avoid
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- EMTL (₦50): A one-off levy applies to electronic transfers or receipts of ₦10,000 or more — it’s statutory, charged at the point of receipt. Budget for it when receiving big transfers.
- CBN-regulated ATM fees: The Central Bank’s 2025 revisions set standard fees for off-bank ATM withdrawals and require clear surcharge disclosure at ATMs; withdrawals at your own bank’s ATMs (on-us) generally remain free. Use this to choose where you withdraw cash.
Read Also: Why Nigerian Banks Deduct ₦50 Naira From Transfers
- Consolidate accounts — fewer accounts = fewer fees Many Nigerians keep multiple dormant or low-use accounts that attract maintenance fees. Close or merge accounts you don’t use. Consolidation reduces monthly maintenance and makes it easier to hit a single account’s minimum-balance waiver threshold.
- Use your bank’s own ATM network : With the CBN’s new fee rules, withdrawals from other banks’ ATMs can attract both a base fee and a surcharge. Withdraw larger amounts less frequently at your bank’s ATMs to minimize multiple charges. Always confirm on-screen surcharge amounts before approving an off-bank withdrawal.
- Turn off paid SMS alerts — use email and app push notifications: Banks in Nigeria increasingly charge per SMS alert. You can usually deactivate SMS transaction alerts (many banks require a signed indemnity form) and switch to free email statements or app push notifications. Be aware of the liability disclaimers some banks require when you opt out. If you need alerts for security, set app notifications and email instead of SMS.
- Choose the right account type and maintain the minimum balance: Some current accounts attract higher monthly or card maintenance fees than savings accounts. If you’re saving, move money into an interest-bearing or fee-friendly savings wallet. Where possible, keep the minimum balance that qualifies you for fee waivers or premium tiers.
- Batch transfers and consolidate payments: Because some fees are per-transaction (and the EMTL is per eligible transfer), combine payments where possible (e.g., pay multiple bills with a single transfer) to reduce the number of chargeable events. For recurring payments, use single standing orders or domiciliary arrangements when those carry lower fees.
- Use fintech and digital wallets for small transfers: Many Nigerian fintech offer lower-cost transfers or fee-free tiers for small transactions. For routine small transfers or merchant payments, use reputable digital banks and wallets known for cheaper transfers — but verify limits and safety before moving large sums.
- Negotiate and ask for fee waivers: If you have a long relationship with a bank, a steady salary credit, or significant balances, ask your branch manager or relationship officer for fee concessions — banks sometimes waive card issuance, maintenance, or online transfer fees to retain customers. Documentation of salary or large balances helps.
- Monitor statements and challenge hidden charges : Review monthly e-statements carefully. Banks occasionally deduct VAT, “maintenance” or “platform” fees that may be negotiable or applied in error. File an official dispute if you spot unexplained deductions; keep evidence (screenshots, receipts) and escalate to the bank’s complaints desk or the Consumer Protection Unit.
- Minimize card fees and replacements: Avoid unnecessary card replacements by protecting your card details and setting realistic expiry reminders. If you seldom use a debit card, consider disabling physical card transactions and using virtual cards (where available) to cut maintenance and replacement costs.
For businesses that receive many electronic receipts, register and plan for EMTL deductions in cash flows forecasts. Consider using bank packages designed for corporate customers that bundle services at a discounted rate, Leverage bulk-payment products some banks offer (lower per-transaction fees for bulk payroll or vendor payments).
Conclusion : You can’t eliminate statutory levies like the EMTL, but you can minimize many routine bank charges by consolidating accounts, using your bank’s ATMs, switching off paid SMS alerts in favor of app/email notifications, batching transfers, negotiating with banks, and monitoring statements. Small changes—made consistently—add up to real savings over a year.
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