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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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Konga Launches Tech Month Campaign with Exclusive Offers

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Nigeria’s leading composite e-commerce platform, Konga, has officially announced the launch of its highly anticipated Konga Tech Month. Konga Tech Month is a month-long campaign dedicated to delivering exceptional value across the technology category.

Konga Launches Tech Month Campaign with Exclusive Offers

Konga Tech Month Campaign

It runs from May 1 to May 31, 2026, and presents one of the most compelling opportunities for consumers, SMEs and corporates to acquire premium technology products at jaw-dropping discounts of up to 50% across a wide range of products.

Tech Month is designed to meet the growing demand for genuine, reliable, high-performance technology solutions in Nigeria’s rapidly evolving digital economy. Through strategic collaborations with global technology leaders such as Samsung, LG, ASUS, HP, and Starlink, Konga is reinforcing its commitment to technological democratization as the global economy increasingly pivots toward a digital-first future.

From smartphones and laptops to televisions, refrigerators, and cutting-edge accessories, the campaign delivers a comprehensive suite of technology solutions tailored to both personal and professional needs. Whether consumers are upgrading their home entertainment systems or equipping their workspaces for enhanced productivity, Konga Tech Month provides a one-stop destination for quality, affordability, and convenience.

A key highlight of this year’s campaign is the prominent participation of Starlink as a focal partner. In a significant development for Nigeria’s connectivity landscape, Starlink has designated Konga as its authorized support centre, enabling customers to access in-person assistance at select Konga retail stores nationwide.

This means that beyond enjoying exclusive discounts on Starlink kits during special campaign phases, customers can now receive expert guidance on purchase decisions, installation, and troubleshooting, bridging the gap between advanced global technology and local accessibility. This initiative reinforces Konga’s commitment to delivering not just products, but end-to-end customer experience and support.

Konga Tech Month is further enhanced by a range of value-driven incentives designed to improve convenience and drive customer satisfaction. Shoppers who purchase from the official stores of Samsung and LG on Konga will enjoy free delivery, reinforcing the platform’s promise of affordability without hidden costs.

In addition, Konga’s same-day delivery service, KongaNow, ensures that customers can receive their orders within hours, eliminating the delays typically associated with e-commerce transactions. This capability is particularly beneficial for urgent purchases, enabling users to access essential tech products exactly when they need them.

To maximise the benefits of the campaign, customers are encouraged to download the Konga mobile app, available on both the Google Play Store and Apple App Store. App users gain access to exclusive app-only deals, including free shipping on select offers, as well as early notifications on flash sales and limited-time promotions.

Beyond the immediate consumer benefits, Konga Tech Month plays a strategic role in advancing digital adoption across Nigeria. As businesses and individuals increasingly rely on technology for communication, education, and productivity, access to affordable and reliable devices becomes essential.

By partnering directly with original equipment manufacturers (OEMs), Konga ensures that customers receive 100% authentic products, eliminating concerns around quality and reliability. This direct sourcing model not only strengthens consumer trust but also supports long-term brand loyalty.

Furthermore, the campaign aligns with broader economic goals by facilitating access to tools that drive efficiency, innovation, and competitiveness in various sectors. From small businesses seeking to digitise operations to students investing in learning tools, Tech Month provides practical solutions that empower users to thrive in a technology-driven world.

To fully capitalise on the opportunities presented by Konga Tech Month, customers are advised to stay actively engaged with the platform. Following Konga’s official social media channels and enabling notifications ensures real-time access to flash sales and exclusive discount phases.

As the campaign unfolds throughout May, shoppers can expect continuous updates, surprise deals, and enhanced offerings designed to deliver maximum value.

Konga Tech Month is more than a promotional event; it is a strategic initiative that underscores Konga’s leadership in Nigeria’s e-commerce and technology retail space. By combining competitive pricing, global brand partnerships, seamless logistics, and customer-centric innovations, Konga continues to redefine how Nigerians access and experience technology.

As the digital economy expands, initiatives like Tech Month serve as critical enablers, ensuring that consumers are not only connected but also equipped with the tools needed to succeed.

For shoppers across the country, the message is clear: this May, the smartest way to upgrade your digital life is through Konga Tech Month.


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UBA Debunks Viral Divorce Claim against Elumelus, Suspects in Custody

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United Bank for Africa (UBA) Group has dismissed as false and malicious reports circulating on social media alleging that Mr Tony Elumelu, its croup chairman,  has divorced his wife, describing the claims as defamatory and deliberately fabricated to tarnish his reputation.

UBA Debunks Viral Divorce Claim against Elumelus, Suspects in Custody

UBA

In a formal notice issued on Sunday, the bank said the publication and similar related content were entirely baseless, reckless, and designed to mislead the public while causing reputational damage to Elumelu and the UBA brand.

According to the statement signed by Mrs Alero Ladipo, Group Head, Brand, Marketing and Corporate Communication, the matter has been reported to relevant law enforcement authorities, which have already commenced investigations into the source and spread of the claims.

The bank disclosed that three individuals allegedly linked to the creation and dissemination of the publication had been arrested. They were identified as Mr Kingsley Akunemeihe, also known as @Directorkem; Mr Chigozie Success Ihebom; and Mr John Surpruchi Nwanorue, known on social media as @problemchimky.

UBA said investigations were ongoing and could result in additional arrests and prosecutions of other individuals connected to originating, amplifying, or sustaining the false publication.

The financial institution issued a cease-and-desist notice to all persons, platforms, and entities involved in publishing or reposting the claims, directing them to immediately remove the content from all platforms and refrain from further dissemination.

It also instructed all affected parties to preserve records, including digital footprints, communications, and metadata linked to the creation and spread of the publication, pending possible legal action.

The bank warned that failure to comply with the directive would lead to legal proceedings, including defamation suits, claims for damages, injunctive relief, and other remedies available under applicable laws.

“UBA Group is resolute in protecting the reputation, privacy, and integrity of our brand and that of Mr Elumelu, and will pursue all necessary legal avenues, civil and criminal, to ensure all responsible parties are identified and held accountable,” the statement said.

The bank urged the public to disregard the false reports and rely only on verified information from official channels.


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NITDA Partners Galaxy Backbone to Deliver Subsidised Cloud Services to Startups

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National Information Technology Development Agency (NITDA), through its Office for Nigerian Digital Innovation (ONDI), has entered into a strategic partnership with Galaxy Backbone Limited (GBB) to provide subsidised sovereign cloud services for startups participating in the iHatch programme.

NITDA Partners Galaxy Backbone to Deliver Subsidised Cloud Services to Startups

NITDA

The collaboration is aimed at strengthening Nigeria’s digital ecosystem by improving access to critical digital infrastructure, promoting indigenous innovation, supporting data sovereignty and expanding digital inclusion.

The development was disclosed in separate statements issued by NITDA and Galaxy Backbone.

Under the arrangement, startups enrolled in the iHatch programme will be onboarded onto the Galaxy Cloud Platform (GxCP), GBB’s sovereign cloud infrastructure built on Uptime-certified Tier III and Tier IV data centres, a nationwide fibre network and advanced cybersecurity architecture.

According to the agencies, the initiative is designed to reduce infrastructure barriers facing early-stage businesses by providing access to secure enterprise-grade cloud resources at subsidised rates.

Director-General of NITDA, Mr Kashifu Inuwa Abdullahi, described the partnership as a strategic intervention to strengthen the resilience and global competitiveness of Nigeria’s startup ecosystem.

Abdullahi said access to reliable digital infrastructure remained one of the most critical enablers for startups seeking to innovate, scale and compete internationally.

He noted that the collaboration aligns with NITDA’s broader digital economy agenda, particularly in building local technology capacity and reducing dependence on foreign infrastructure.

“This partnership reinforces our commitment to nurturing a resilient and globally competitive startup ecosystem by ensuring innovators have access to the infrastructure required to build sustainable businesses,” he said.

Managing Director and Chief Executive Officer of Galaxy Backbone, Prof. Ibrahim Adeyanju, said the initiative would empower startups with access to secure, enterprise-grade cloud infrastructure while enabling them to host their data locally within Nigeria.

According to him, hosting data locally is critical to strengthening Nigeria’s digital sovereignty, improving compliance and enhancing economic resilience.

Adeyanju explained that to ensure sustainability and long-term impact, GBB would deploy a tiered, milestone-based support model aligned with the development stages of startups.

He said cloud credits would be released in phases across three stages of startup growth — Build, Validate and Scale.

The credits, he said, would remain valid for 12 months, after which beneficiaries would transition to either standard subscription plans or pay-as-you-go billing options.

“This model ensures startups receive support at the stages where they need it most, while also encouraging efficient resource management and long-term business sustainability,” he said.

Adeyanju added that Galaxy Backbone would establish a dedicated Startup Success Team to guide participating startups through onboarding and encourage platform adoption.

He said the initiative would also include automated usage monitoring and alerts to help startups optimise resource utilisation and avoid operational inefficiencies.

In a move aimed at protecting startups from exchange rate volatility, he disclosed that all post-credit billing under the scheme would be denominated in naira.

General Manager, Strategic Partnerships at GBB, Mr Abdul Malik Suleiman, described the partnership as a deliberate intervention to bridge the infrastructure gap confronting Nigerian innovators.

Suleiman said making world-class cloud services more accessible to local startups would significantly lower entry barriers for innovation-driven businesses.

Also speaking, National Coordinator of ONDI, Ms Victoria Fabunmi, said integrating Galaxy Backbone’s sovereign cloud platform into the iHatch programme would strengthen startups’ ability to transition from ideation to commercial scale.

Fabunmi noted that access to the right digital tools and infrastructure was crucial to helping startups compete effectively in both local and global markets.

She said the iHatch programme, which is supported by NITDA through ONDI, had already trained over 160 startups across 37 hub partners nationwide.

According to her, the partnership with GBB is expected to deepen the programme’s impact by accelerating innovation, enabling startup growth and strengthening Nigeria’s broader digital economy.

Industry stakeholders say the initiative reflects growing efforts by government institutions to provide local alternatives to foreign digital infrastructure while reducing operational costs for Nigerian startups.

They also note that the partnership could improve confidence among innovators and investors by strengthening Nigeria’s cloud ecosystem and encouraging local data hosting.

The agencies expressed optimism that the collaboration would unlock new growth opportunities for startups and further position Nigeria as a leading innovation hub on the continent.


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