General News
Erosion of Trust: How Hidden Charges, Downtime Are Bankrupting Confidence in Nigerian Banks
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]
Alpha Morgan Bank Limited, a new generation bank, has dragged 19 banks in Nigeria before the Federal High Court in Lagos in its quest to recover the sum of N230.9 million that was fraudulently withdrawn from the accounts of two of its customers due to a system glitch.
Alpha Morgan Bank claimed in the suit that the funds belonging to NEM Insurance Plc and Extension Publications Limited were stolen from its vault and allegedly fraudulently transferred into multiple accounts across 19 financial institutions.
The bank is requesting an order from the court, directing the 19 financial institutions to reverse and remit to Alpha Morgan Bank all funds illegally debited from the customers’ settlement and collection accounts and transferred into the accounts of the defendants’ customers.
The suit was filed by Alpha Morgan Bank, alongside the affected customers.
In an affidavit filed in support of the suit and deposed to by Dayo Abe, litigation officer, the plaintiffs averred that several digital financial services agents had taken advantage of a system glitch in the bank’s operations.
Abe alleged that the agents, acting as service providers and holding accounts with some of the defendant financial institutions, used the glitch to unlawfully make several transfers from the accounts of NEM Insurance Plc and Extension Publications Limited.
He also claimed that N230,978,536 was illegally transferred from the customers’ accounts, which were domiciled with Alpha Morgan Bank, into various accounts belonging to individuals across 19 financial institutions.
The Plaintiffs further stated that following the bank’s complaint, the affected financial institutions placed temporary “no-debit” restrictions on the implicated accounts.
Abe alleged that the perpetrators continued to transfer the illicit funds into other accounts linked to their Bank Verification Numbers (BVNs), raising concerns that the funds could be completely dissipated unless all accounts connected to the suspected fraudsters were immediately frozen.
He argued that failing to block all accounts associated with the perpetrators would result in continued illegal withdrawals, thereby exposing investors’ and shareholders’ funds to risk further.
The Plaintiffs also submitted that the system glitch and the resulting fraud have caused severe financial hardship and that urgent court intervention is necessary to prevent additional losses.
General News
7,500 African SMEs to Receive AI and Digital Trade Skills Through New Google and AfCFTA Secretariat Programme
Thousands of small and medium-sized enterprises (SMEs) across Nigeria and the African continent can now gain critical AI and digital skills to expand their businesses and trade continent-wide. Google and the African Continental Free Trade Area (AfCFTA) Secretariat have launched the ‘AfCFTA Digital Inclusion & Entrepreneurship Programme,’ a new, free training initiative powered by the Google Hustle Academy.
Small businesses are the backbone of Africa’s economy, generating nearly 80% of jobs across the continent. This programme is designed to close the digital skills gap by providing entrepreneurs with AI-powered solutions and localized training that addresses the real-world demands of today’s market. The initiative will build on the success of the Google Hustle Academy, which has supported over 18,000 SMEs across Africa since 2022.
H.E. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, commented on the partnership’s significance. “The Programme aligns with the transformative goal of the AfCFTA, particularly outlined in the Protocol on Digital Trade and the Protocol on Women and Youth in Trade, to position MSMEs, women, youth, persons with disabilities, rural farmers, and other stakeholders as key drivers and beneficiaries of the AfCFTA. It is the demonstration of our commitment to fostering digital inclusion and empowering MSMEs to trade under the AfCFTA using digital technologies.”
“Technology is a powerful equalizer, and this partnership is about providing thousands of African entrepreneurs with the practical tools and knowledge to unlock new opportunities,” said Charles Murito, Google’s Regional Director for Government Affairs and Public Policy in Sub-Saharan Africa.
“By focusing on critical areas like AI, e-commerce, and cross-border trade, we’re helping to build a more connected and prosperous digital ecosystem across the continent. This is a testament to our ongoing commitment to Africa’s vibrant and dynamic business community.”
A Curriculum for Continental Growth
The training focuses on action-oriented learning through three core modules, and will be delivered in English, French, Arabic, and Portuguese to ensure accessibility for entrepreneurs across Africa.
Cross-Border Digital Trade: Co-created with the AfCFTA Secretariat, this module turns policy into practice. Entrepreneurs will learn to find new markets, adapt products, and master the logistics of cross-border payments and shipping.
Cloud for Small Businesses: This module focuses on using cloud tools to boost efficiency and cut costs. Participants get hands-on training with Google Workspace for teamwork and Google Cloud for secure operations.
AI for Productivity: This module provides practical skills to scale a business using AI. Entrepreneurs will learn to use tools like Google Gemini to automate tasks, create marketing content, and analyze customer data.
UpSkill Universe, a leading digital skills training provider, will manage the programme delivery. “Entrepreneurs across Africa are already driving change. We recognise the challenges they face, from the rise of AI to shifting customer behaviours,” said Gori Yahaya, CEO of UpSkill Universe. “This collaboration ensures we can equip businesses with the practical tools and technologies they need to grow, scale, and thrive.”
Eligibility and Application Details
Applications for the programme are now open. The initiative is designed for SMEs that have been in operation for at least six months and are based in selected AfCFTA member states, including Nigeria, Kenya, South Africa, Ghana, Cameroon, Senegal, Togo, Côte d’Ivoire, Rwanda, Mauritius, Ethiopia, Tanzania, Namibia, Zambia, Angola, Mozambique, Egypt, Tunisia, and Morocco.
General News
Mastercard and Zenith Bank Launch Essential Debit Card to Boost Financial Inclusion in Nigeria
Mastercard and Zenith Bank have collaborated to launch the Essential Debit Card, scalable solution designed to enhance access to secure digital payments in Nigeria.
L–R: Oluwadamilare Mesimo, Director, Account Management at Mastercard; Dr. Folasade Femi-Lawal, Country Manager for West Africa at Mastercard; Dame Dr. Adaora Umeoji, GMD/CEO, Zenith Bank Plc; Dr. Adobi Nwapa, Executive Director, Zenith Bank Plc; Dr. Celestina Appeal, AGM/Group Head, Card Services, Zenith Bank Plc.
The card is tailored to meet the everyday financial needs of underserved populations, including low-income earners, who have historically faced barriers to formal banking services.
The introduction of this card comes at a time when Nigeria’s digital economy is gaining significant momentum. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions reached ₦1.08 quadrillion in 2024, an 80% increase from ₦600 trillion in 2023.
Point-of-sale (PoS) transactions also surged to ₦19.4 trillion, an 81% year-on-year rise, reflecting the growing trust among consumers and merchants in digital platforms and a rising demand for accessible financial tools.
Folasade Femi-Lawal, Country Manager and Area Business Head for West Africa at Mastercard, said: “At Mastercard, we believe that inclusion fuels innovation, and innovation must be inclusive by design.
The Essential Debit Card offers a gateway to economic opportunity for millions. Through this collaboration with Zenith Bank, we are scaling impact by meeting people where they are, with the tools they need to thrive in an increasingly digital world.”
Dame Dr. Adaora Umoji, OON, Group Managing Director/Chief Executive at Zenith Bank plc, said: “This launch aligns with our ambition to drive financial inclusion at a larger scale.
“By offering an affordable, secure and practical digital payment solution, we’re empowering more Nigerians to participate in the formal economy, supporting not only individual progress but national economic growth.
“Together, we’re breaking barriers to everyday commerce and moving a step closer toward closing the financial inclusion gap in Nigeria.”
Zenith Bank began issuing the Essential Debit Card in July 2025 across its national network of physical branches and digital platforms. Customers can choose between a physical or virtual card, depending on their preferences.
As one of the first tier-one banks in Nigeria to adopt Mastercard’s Essential Debit framework, Zenith Bank is strengthening its ability to reach high-potential, underserved market segments through simplified onboarding and lower issuance cost.
By combining Mastercard’s global network and trusted technology with Zenith Bank’s nationwide reach, the Essential Debit Card delivers a simple, secure and affordable payment solution that aligns with how Nigerians live, work and transact today.
This collaboration reinforces a shared commitment to unlocking inclusive growth and accelerating the transition toward a more digitally empowered economy.
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