Customers lament rising electronic bank transaction charges

Bank customers across Nigeria have raised concerns over increasing charges on electronic transactions, saying frequent deductions from transfers, ATM withdrawals and card payments are gradually becoming a financial burden.

Customers who spoke on the development said while individual transaction charges may appear insignificant, repeated deductions can accumulate into substantial amounts, particularly for individuals and small businesses that conduct several transactions daily.

The concerns come amid the continued growth of digital banking in Nigeria, with customers increasingly relying on mobile applications, internet banking, USSD platforms, ATMs and electronic transfers for everyday payments.

An analysis of the unaudited financial statements of 11 listed Nigerian banks shows they generated approximately N224.69 billion from electronic banking services and ATM/card-related charges between January and March 2026. That was 12.56 per cent higher than the N199.61 billion recorded in the first quarter of 2025.

One customer said the charges had become particularly noticeable when carrying out multiple low-value transactions.

“Sometimes I make several small transfers, and by the time I check my account, I realise that a significant amount has gone into transaction charges,” the customer said.

The customer explained that the situation had encouraged them to combine transactions where possible and avoid unnecessary transfers.

Another customer said some deductions were difficult to understand because different charges could appear on account statements.

“I sometimes see different deductions and I don’t always understand what each one is for. Banks should explain these charges clearly so customers know exactly what they are paying for,” the customer said.

The customer added that there were occasions when using a Point-of-Sale terminal or cash appeared more economical, although keeping money in a bank remained preferable because carrying large amounts of cash was inconvenient and risky.

Financial analysts said the issue should be viewed within the broader transformation of Nigeria’s banking industry, where digital channels have become central to banking operations.

A banking analyst, Raheem Adedoyin said banks incur costs in maintaining digital infrastructure, cybersecurity systems, payment platforms and other technology services, but customers should not be left confused about the deductions.

According to the analyst, banks need to ensure that their pricing structures are transparent, predictable and proportionate, particularly for low-value transactions.

“Digital banking is supposed to make financial services easier and more accessible. If transaction costs become excessive, customers may begin looking for alternatives or reduce their use of formal banking channels,” the analyst said.

Another financial expert said the cumulative effect of transaction charges could be more significant for low-income earners, students, petty traders and small businesses that make numerous transfers.

Customers also called on banks to review charges on small-value transactions, arguing that fees should reflect the size of the transaction.

One customer said a charge of more than N100 on a transaction of about N10,000 could be significant for people operating on tight budgets.

“They should reduce their charges. Not everyone can afford it,” the customer said.

Despite their complaints, customers acknowledged that electronic banking had made payments faster and more convenient, eliminating the need to visit bank branches for many routine transactions.

However, they said the convenience would be more meaningful if transaction charges were affordable and clearly explained.