By Abiodun JIMOH
Nigerians are paying a steep price to access basic banking services. From transfer fees to SMS alerts, stamp duties, card maintenance, and the newest levy—cybersecurity charges—deposit money banks (DMBs) now rake in over N600 billion annually from various transaction charges, according to estimates based on CBN data and bank earnings reports.
This steady drip of deductions, often small individually, has created a pool of silent frustration. Many customers are beginning to question the real value they receive from traditional banks.
In 2023 alone, seven major banks—Access, Zenith, GTCO, UBA, FirstBank, Fidelity, and FCMB—generated over N556 billion from electronic banking fees and account maintenance charges. With the addition of cybersecurity levies introduced in 2024, and transaction charges across smaller banks, industry analysts believe the figure now comfortably exceeds N800 billion.
The newly introduced 0.5% cybersecurity levy by the Central Bank, aimed at securing Nigeria’s financial systems, has further deepened concerns about affordability and trust. For many low-income earners, students, and small business owners, it’s one charge too many.
“I’m charged for sending, for receiving, for ATM maintenance—even for alerts I didn’t ask for,” lamented Tosin O., a Lagos-based trader. “It’s like the banks are profiting more from my existence than my savings.”
The result? A quiet revolt. Cooperative societies, fintech apps, and even old-school thrift collectors are seeing a resurgence in popularity, offering Nigerians simpler, more transparent alternatives.
“The system is supposed to deepen financial inclusion,” says Chuka Onwuchekwa, a financial analyst. “But with these excessive charges, banks are actively pushing people out of formal banking.”
A 2023 EFInA survey showed that over 38 million Nigerian adults remain financially excluded—many citing high costs of banking as a key reason. With inflation and unemployment still high, more citizens are likely to turn away from banks unless the trend is reversed.
For now, banks continue to post record profits on the back of these fees, even as their customers tighten belts. The real question is: how much longer can this model remain sustainable
