The Central Bank of Nigeria (CBN) has issued a new directive requiring banks and other financial institutions to submit monthly reports detailing all failed electronic transactions conducted through various digital channels. This move is part of enhanced compliance measures introduced in the recently revised Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026.
The circular, dated April 21, 2026, mandates that Chief Compliance Officers and Heads of Information Technology in each financial institution must jointly render these electronic reports. The reports are to cover failed transactions originating or terminating within the institution across channels such as Automated Teller Machines (ATMs), Point of Sale (PoS) terminals, mobile platforms, and web interfaces.
These reports are to be submitted electronically to designated CBN email addresses, underscoring the regulator's commitment to stricter monitoring of service failures within the Nigerian banking system. The directive aims to improve transparency and accountability in electronic payment systems.
Beyond transaction reporting, the CBN has implemented broader accountability measures, placing responsibility on the top management of financial institutions to ensure strict adherence to the new guide. Executive Compliance Officers or Managing Directors are tasked with cascading compliance expectations across all business units and ensuring that banking systems are configured to apply only approved charges.
Specifically, Heads of Information Technology must ensure that all system configurations only permit the application of charges as permitted by the guide. Chief Compliance Officers are responsible for monitoring strict compliance with this framework. The revised guide, which replaces the 2020 version, becomes effective on May 1, 2026.
The CBN stated that the review of the guide aims to foster a safe and sound financial system, encourage innovation, and expand financial inclusion by reducing tariffs on micropayments and transactions. The revised framework is also intended to strengthen oversight, encourage the adoption of electronic payment channels, and accommodate new industry participants.
A significant feature of the proposed guide includes caps on several banking charges and a requirement for banks to clearly disclose fees. Customers will also have the ability to negotiate charges where applicable. The document specifies that where fees are negotiable, financial institutions must inform customers of their right to negotiate and agree on charges through verifiable means.
Furthermore, any new product, service, or charge not covered in the guide requires prior written approval from the CBN, tightening regulatory control over fee innovation. The new structure applies to a wide range of institutions, including commercial banks, merchant banks, payment service banks, non-interest banks, microfinance banks, finance companies, primary mortgage banks, development finance institutions, credit guarantee companies, and mobile money operators.
To bolster consumer protection, the CBN directed that non-credit-related charges can only be applied to the extent of funds available in a customer's account. Any unpaid charges must be deferred without accruing interest. The draft guide also introduces enhanced compliance requirements, mandating senior management and compliance officers to ensure that only approved charges are applied across banking systems.
The CBN has set clear limits for electronic transfer charges: no fee for transactions up to N5,000, N10 for transactions between N5,000 and N50,000, and N50 for transactions above N50,000. ATM withdrawals from other banks are capped at N100 per N20,000 withdrawal on on-site machines, with additional surcharges regulated for off-site transactions.
The guide maintains zero charges on services like account reactivation, account closure, and mandatory monthly statements. It also introduces caps on other services, such as statement requests to third parties and card issuance fees. In the lending segment, all loan pricing must be quoted using the Annual Percentage Rate (APR). Penalty charges on loan defaults are capped at one per cent per month for naira loans and 0.25 per cent for foreign currency loans.
The regulator has outlined minimum disclosure requirements for loan agreements, including borrower details, loan purpose, repayment schedule, collateral, interest rates, and penalties, to enhance transparency in credit transactions. The draft guide is open for public comments until May 8, 2026, before its full implementation.
This directive follows a previous CBN action in October 2025, where it mandated Deposit Money Banks to refund customers for failed ATM transactions within 48 hours, as part of reforms to protect consumers and restore confidence in the banking system.
