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Erosion of Trust: How Hidden Charges, Downtime Are Bankrupting Confidence in Nigerian Banks

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By Blaise Udunze

In a society where trust is the lifeblood of finance, Nigeria’s banking sector seems to be bleeding credibility at an alarming rate. The relationship between banks and their customers that was once defined by confidence and reliability has gradually shifted into one coloured by suspicion, frustration, and resentment.

Across the country, Nigerians now speak of their banks not with loyalty, but with a weary sense of inevitability, just like tenants trapped in a bad lease. It is no longer just about economic hardship; it is about the growing perception that the very institutions meant to protect people’s money are quietly exploiting them.

Despite repeated Central Bank of Nigeria (CBN) sanctions for breaching its Guide to Charges by Banks and Other Financial Institutions, banks continue to extract billions of naira from customers through transfers, withdrawals, ATM fees, SMS alerts, and account maintenance. With over 312 million active bank accounts in the country, these charges have become a lucrative revenue stream, now contributing more to profitability than traditional lending or genuine financial intermediation. N10 here, N50 there, small sums that, when multiplied across 312 million active bank accounts, translate into billions (N15,600,000,000 when multiplied by N50 charges) silently siphoned from the public’s pockets each month.

The banking public has long tolerated these fees in the name of “service sustainability,” but tolerance has its limits. What might seem like minor deductions of N10 here and N50 there has become a silent tax on trust. For many, these small, routine deductions now make the difference between subsistence and shortfall. Despite the CBN’s efforts to standardise bank charges, many institutions continue to test public patience.

The apex bank’s February 2025 circular (FPR/DIR/GEN/CIR/001/002) introduced new charges for ATM withdrawals: N100 per N20,000 at “on-site” ATMs and up to N600 for “off-site” machines. Debit card maintenance costs N50 per quarter, credit card issuance N1,000, and a security token for online banking up to N2,500. Add to that a 0.005 percent cybersecurity levy, N10-N50 transfer fees, 7.5 percent VAT on services, N6.98 for USSD transactions, N6 per SMS alert, and N50 for stamp duty, and it becomes clear that Nigerians are paying more for access to their own money than for the value banks provide.

The system has made routine transactions financially exhausting, and in the process, the public’s goodwill is being drained faster than their account balances. Economist Paul Alaje of SPM Professionals puts it bluntly: “Banking is not done in Nigeria. What we have is money keeping and charges on deposits.” Nigerian banks appear to have perfected the art of holding deposits and generating profits not from innovation or lending, but from layered fees. A small business owner transferring N500,000 weekly pays N25 as a cybersecurity levy, N50 as a transfer fee, N3.75 as VAT, and N6 for SMS notifications per transaction, which sums to a total of N84.75. Multiply that by a week’s trading cycle, and the deductions become a serious dent in working capital.

Worse still, these fees often lack transparency. Customers discover new deductions like surprise taxes. The Guide to Charges explicitly requires clarity, yet many banks bury costs in technical terms and periodic bulk debits. For the public, this lack of transparency is not just a financial grievance; it’s an ethical one.

Ironically, the same banks that boast of digital transformation now struggle with reliability. Failed transfers, app outages, and delayed reversals have become as common as debit alerts.

In a nation increasingly dependent on digital payments, system failures are not minor inconveniences, but they are breaches of trust. They distort commerce, frustrate small businesses, and undermine confidence in the formal economy. Data tells the story: E-business income for some top-tier banks dropped to N209.34 billion in the first half of 2025 from N215.01 billion a year earlier, signaling operational strain despite increased customer activity. Behind the glossy digital marketing lies an uncomfortable truth, which reveals that many banks are running on outdated infrastructure stretched to breaking point.

If poor service was not enough, liquidity rumours have joined the mix, threatening to shake what’s left of public confidence. In an age of social media, a single viral tweet about a “bank under stress” can trigger panic withdrawals before the facts emerge. Ironically, the data paints a different picture. Banks’ deposits with the CBN surged to N67.72 trillion in the first half of 2025, which represents a 730 percent year-on-year increase. System liquidity even peaked at N5.73 trillion. Yet the same period saw N131.42 trillion borrowed from the CBN by commercial and merchant banks, representing a 636 percent increase.

While these figures suggest active liquidity management rather than crisis, public perception doesn’t follow balance sheets; it follows belief. In banking, perception is reality, and right now, that reality feels shaky.

At the core of this crisis is not just money; it is morality. Banking, at its essence, is a covenant of trust. Customers deposit their earnings in the belief that the system will protect them, not prey upon them. But in Nigeria, that covenant appears frayed. Many banks treat transparency as an obligation rather than a principle. Every policy adjustment is introduced as a necessity, yet it almost always ends up extracting more from the customer than it gives back in service quality.

If banks are to rebuild credibility, they must begin with empathy. Publish clear charge breakdowns in plain language. Communicate promptly when systems fail. Invest in resilient digital infrastructure instead of another rebrand campaign. Recognise that trust is not maintained by advertising slogans; it is earned through consistency, fairness, and accountability.

The CBN, for its part, must match regulatory rhetoric with enforcement. Penalties of N2 million per infraction, as prescribed in its Guide to Charges, are meaningless if rarely applied. A regulator that overlooks systemic overcharging becomes complicit in the erosion of trust it seeks to prevent.

Nigeria’s financial sector cannot grow on distrust. Every hidden charge, every failed transaction, and every rumour left unaddressed chips away at its moral capital. The time has come for the industry to undergo a recalibration from profit obsession to public accountability.

The strength of a banking system is not measured by the size of its headquarters or the number of zeroes in its profits, but by the trust of its depositors. And that trust, once lost, takes more than balance sheet expansion to regain. The Nigerian banking industry must choose between continuing down the path of silent exploitation cloaked in financial innovation or returning to the foundational virtues of integrity, service, and transparency. Only one of those paths leads back to trust.

Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]


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Activist Warns against Rising Junk Food Culture in Nigeria

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Nnimmo Bassey, environmental activist and food sovereignty advocate has raised concerns over the growing influence of junk food culture and global food politics on Nigeria’s food systems.

Activist Warns against Rising Junk Food Culture in Nigeria

Nnimmo Bassey, environmental activist

Bassey warned that the increasing consumption of highly processed foods poses serious risks to public health, cultural identity, and national food security.

He made these remarks on Thursday while speaking at the Sustain-Ability Academy lecture on Food, Power and the  Politics of Hunger, organised by the Health of Mother Earth Foundation in collaboration with the University of Port Harcourt.

“Food is not just for sustenance; it is central to our identity, our relationships, and our traditions,” he said.

He explained that traditional diets reflect the diversity of Nigeria’s ethnic groups and have historically fostered unity within communities.

Bassey traced the evolution of food systems in Nigeria, highlighting how colonialism, commerce, and conflict have reshaped local diets.

He referenced the Nigerian Civil War as a turning point when food was weaponized, leading to widespread malnutrition and long-term dietary changes, particularly in the Eastern region.

The activist criticized the rapid rise of fast food consumption, describing it as a product of modern society’s demand for instant gratification.

According to him, fast food outlets use sensory stimulation, bright lighting, loud music, and constant visual entertainment to distract consumers from questioning the nutritional value of what they eat.

“People leave with more than just a full stomach, they carry heavy metals, artificial colourings, and harmful substances in their bodies,” he said.

Bassey also expressed alarm over the increasing presence of genetically modified organisms (GMOs) in Nigeria’s food system.

He argued that such products, often introduced without sufficient scrutiny, could have long-term health and environmental consequences.

He further cautioned against the role of political leaders in normalizing unhealthy consumption patterns.

“When top politicians publicly consume junk food and sugary drinks, they send a dangerous message that such habits are acceptable or even desirable,” he said.

At the heart of his argument is what he described as “food colonialism” a system driven by global power dynamics, where economic pressures, debt, and cultural influence shape local food choices to benefit multinational corporations at the expense of local farmers.

Bassey called for a “decolonization” of food systems across Africa, urging governments and citizens to prioritize indigenous foods, protect seed-sharing traditions, and resist policies that undermine local agricultural practices.

He also challenged prevailing narratives around hunger, questioning whether food insecurity is truly a result of low productivity.

“In countries like Nigeria, nearly half of all food produced goes to waste. The issue is not just production, but distribution, policy, and power,” he explained.

The session concluded with a call for urgent reforms to ensure fairness, resilience, and sustainability in food systems, with a focus on supporting smallholder farmers and addressing the structural causes of hunger.


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Gartner Forecasts Surge in AI-powered Public Services

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At least 80% of governments will deploy artificial intelligence (AI) agents to automate routine decision-making, enhancing efficiency and service delivery by 2028.

This is according to market research firm Gartner, which highlights a growing shift toward digital governance, where AI-powered systems will increasingly handle repetitive administrative tasks, such as processing applications, managing public records and responding to citizen queries.

“Government chief information officers are under growing pressure to embed AI into decision-making capabilities rapidly and responsibly,” says Daniel Nieto, senior director analyst at Gartner. “The rise of multimodal AI, alongside conversational and agentic systems, has expanded what public organisations can automate, understand and anticipate.”

The Gartner report comes as South Africa is moving to embed AI into public administration, with early use cases emerging across service delivery, disaster response and internal operations, even as full-scale deployment of autonomous “AI agents” remains some years away.

The country’s National AI Policy Framework, released in 2024, has set the direction for adoption, with a comprehensive national policy expected by 2027.

Implementation is likely to follow from 2027 onwards, positioning the country for a more structured and regulated rollout of advanced AI systems across departments.

While South Africa has yet to deploy AI agents at scale, government and research initiatives indicate that agent-like systems are already taking shape.

Global use cases

Globally, governments are rapidly deploying AI agents to automate public services and internal operations, shifting from simple chatbots to systems that can execute tasks and coordinate workflows.

In the US, federal and city agencies are using AI agents to handle citizen queries, draft documents and manage call centres, while in China, autonomous systems are being integrated into administrative processes and urban management.

European governments are piloting AI-driven tools in policing and public service delivery, and in emerging markets, agentic platforms are being used to improve disaster response, financial inclusion and digital identity systems.

However, Gartner notes that fragmentation is one of the most persistent barriers to AI value in government.

According to a Gartner survey of 138 respondents from government organisations worldwide between July and September 2025, 41% of respondents cited siloed strategies and 31% cited legacy systems as key challenges to adopting and implementing digital solutions.

“Technology modernisation alone has not resolved these issues,” says Nieto.

The market analyst firm says as AI transitions from experimentation to being deeply embedded in decision-making, governance approaches must also evolve. It points out that traditionally, AI governance has centred on managing models, data and algorithms.

However, it states that decision intelligence (DI) shifts this focus towards the governance of decisions themselves; for example, on how they are designed, executed, monitored and audited. This shift in governance is especially critical in government, where public legitimacy relies on transparency and fairness, the firm explains.

Measurable impact

The Gartner survey found that 39% of respondents cited improved service and citizen satisfaction as primary reasons to invest in building citizen trust.

The firm notes that DI offers a structural foundation for operationalising this trust by making decision pathways explicit and auditable.

“By governing decisions, rather than just isolated AI components, governments can better balance automation with human judgement, particularly in high-stakes or rights-impacting contexts,” says Nieto. “Regulated industries and governments cannot rely on opaque ‘black box’ systems for consequential decisions. DI elevates explainability from a technical requirement to a governance imperative.”

Because of the need for transparency in decision-making, Gartner predicts that by 2029, 70% of government agencies will require explainable AI (XAI) and human-in-the-loop (HITL) mechanisms for all automated decisions that impact citizen service delivery.

Gartner explains that XAI and HITL designs are foundational to public-sector DI. These mechanisms ensure decision logic can be inspected, explained and challenged. Because of XAI and HITL, humans also retain authority over exceptions, appeals and high-risk cases, and accountability is preserved even as automation increases, it adds.

While efficiency remains important, Gartner says citizen trust in government’s ability to provide effective services is becoming a key driver of digital transformation. Fifty percent of government respondents cited improved citizen experience as one of their top three priorities.

“As AI and decision intelligence increasingly automate and streamline service delivery, the traditional notion of ‘citizen experience’ evolves,” says Nieto.

“When citizens receive what they need from the government automatically, direct interactions may decrease, making trust in the system’s reliability, fairness and transparency even more critical. Because trust is so imperative in these situations, the predictive capacity to anticipate potential needs could reshape how government digital services are delivered.”

 


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Telegram’s Massive Crackdown Fails to Curb Cybercrime Hubs

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Telegram has unleashed its most sweeping enforcement campaign yet in 2026, deleting millions of illicit channels and groups while boosting daily takedowns from 10,000 to 140,000—with peaks surging past 500,000 in a single day—yet cybercriminal ecosystems remain stubbornly resilient, rapidly reorganising and exploiting the platform’s scale to sustain operations undeterred.

Telegram’s Massive Crackdown Fails to Curb Cybercrime Hubs

Telegram

The paradox is stark: despite blocking over 43.5 million channels in 2025 alone and achieving record transparency in moderation reports, the threat landscape shows no contraction, as fraudsters deploy sophisticated evasion tactics like pre-built backup channels, “Request to Join” gating to thwart bots, bio disclaimers tagging Telegram leadership for plausible deniability, and floods of forwarded messages that preserve criminal knowledge even after originals vanish.

Check Point Exposure Management data reveals 20 percent of removals targeted business-impacting crimes—carding, Fullz trading, hacking services—with communities often reloading audiences instantly from preloaded backups, ensuring operational continuity amid the friction.

For Nigeria, home to Africa’s largest Telegram user base of eight million aged 16-64 per Statista, the stakes are acute: the platform dominates crypto trading, mining schemes, online betting, and gambling hubs, leaving traders, youth, and startups vulnerable to scams that evolve faster than platform defenses.

Kingsley Oseghale, Check Point Software Technologies’ West Africa country manager, warns that “enforcement is real and growing, but criminals adapt quicker—security teams must hunt entire networks, not just channels, via continuous exposure management to dismantle operations at the root.”

Migration to rivals like Discord (just 6% of underground invite links), Signal, SimpleX, or Matrix remains negligible—3 million Telegram invites circulated underground in three months alone—proving its 800 million users, speed, anonymity, and network effects keep it the premier broadcast, recruitment, and marketplace layer, even as high-profile groups like AKULA tested alternatives before reverting.

Spikes in forwarded content during February-April 2025 peaks extended fraud data lifecycles, mirroring broader cybercrime redundancy where attackers assume disruption and build in failover.

This persistence demands proactive vigilance: SOC teams ignoring Telegram risk blind spots in brand protection and threat detection, as evasion now standardises across underground forums—underscoring that while Telegram’s crackdown marks progress, true eradication hinges on intelligence beyond takedowns.


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