Banks’ customers groan over aggressive revenue push, petition CBN

As Nigeria’s banking sector grapples with regulatory reforms, macroeconomic challenges, and the pressure of recapitalisation deadlines, commercial banks appear to have shifted gears, ramping up customer charges in what many perceive as an aggressive revenue drive. This trend has sparked outrage among bank users across the country, culminating in a fresh wave of complaints and petitions to the Central Bank of Nigeria (CBN).

From arbitrary debit alerts to excessive transaction fees, Nigerians are raising alarm over what they describe as “a silent extortion campaign” by banks battling to stay afloat amid high inflation, volatile exchange rates, and tightening monetary policies.

For many customers, the once subtle charges have become overt and unbearable.

The Growing Weight of Charges

At the centre of the public outcry are transaction fees, card maintenance charges, SMS alert costs, transfer fees, and account maintenance levies, which consumers say are spiraling out of control.

According to several customers who spoke to Business Hallmark, banks have increasingly adopted a pattern of deducting small but frequent amounts, often without prior notice or justification.

“I received eight different debit alerts on my savings account in one day — all under ‘account maintenance’ and SMS charges,” said Mr. Fred Nwaogazi, a civil servant in Enugu. “These were not even transaction-related activities. When I contacted my bank, I was told it was ‘standard practice.’ What practice charges you N5 for doing nothing?”

Similarly, Mrs. Kemi Adelaja , a Lagos-based small business owner, lamented how her monthly bank charges have tripled in less than six months. “They now charge for everything — from using your own ATM to checking your balance. My business account sometimes loses over N3,000 monthly just to fees. This is apart from the charges my customers incur when they pay into my account electronically. It’s outrageous,” she said.

For Geraldine Akume, a Benue State lady, “they had once deducted N8.00 from my savings account and I really did not want to be tossed around given my busy schedule, I let it go.

Discontent Turns to Action

In recent weeks, customer grievances have escalated into organized complaints, with consumer rights groups and informal associations of bank users submitting petitions to the CBN.

One such petition, signed by over 4,000 customers under the umbrella of the Coalition Against Excessive Bank Charges (CAEBAC), was submitted last month to the apex bank, urging it to “curb the predatory fee regime being sustained by banks under the guise of financial service delivery.”

The petition accuses Nigerian banks of deploying “opportunistic and opaque fee structures that exploit the financially vulnerable.” It also calls on the CBN to implement a transparent ceiling on service charges, enforce clear disclosure requirements, and penalize violators.

“While we understand that banks are under pressure to raise capital and maintain liquidity, this should not be done by bleeding their customers dry,” the petition reads.

A second group, the Digital Finance Integrity Forum (DFIF), has gone further by threatening to stage protests at the CBN headquarters in Abuja and several bank head offices if reforms are not introduced by August.

Regulatory Context and the Banks’ Defense

The CBN’s “Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions”, last updated in 2023, outlines permissible fees, but critics say the document is too vague and banks exploit its loopholes.

Banks, however, argue that the uptick in charges is both regulatory-compliant and necessary to maintain services in an increasingly difficult economic environment.

A senior official at a Tier-1 bank who asked not to be named admitted that “banks are tightening all revenue avenues” as they prepare for the 2026 recapitalisation deadline. “We are not intentionally punishing customers, but the cost of operations has more than doubled in the last 12 months — power, cybersecurity, FX sourcing, compliance costs, everything. Most customers do not realize that maintaining digital banking infrastructure is not cheap,” he said.

He added that many of the charges, such as those on SMS alerts, are also beyond the bank’s control. “The telcos set those charges, and banks only pass them on. If the regulator really wants to ease customer burden, it needs to coordinate action across sectors, not just slap banks.”

Data Reveal an Upward Trend

A recent analysis by BudgetIT and SBM Intelligence shows a steady rise in banks’ non-interest income over the past two years — a major portion of which is made up of service fees, commissions, and penalties. In 2023 alone, the top five Nigerian banks earned over ₦700 billion from non-interest income, a 35% jump from the previous year.

Experts believe this growth is tied not just to increased digital adoption but to more aggressive monetization of basic services.

“Banks are squeezing more from fewer customers,” said financial analyst and fintech consultant, Dr. Fatima Ogunleye. “What’s worrying is not that they charge, but how unbundled and unpredictable the charges have become. Many customers feel they are being punished for using financial services they can’t avoid.”

She also noted that banks may be testing public tolerance ahead of stiffer recapitalisation demands. “The reality is that profit margins are being hit by FX losses and regulatory adjustments. If banks can’t expand their loan portfolios because of high risk, the next best bet is to widen the fee net.”

Central Bank Under Pressure

Although the CBN has not issued a formal response to the recent petitions, sources within the bank confirmed that the Consumer Protection Department has received multiple formal complaints and is reviewing them.

“The Governor has received briefings on the issue,” a senior CBN official told The Guardian. “The apex bank is aware that confidence in the financial system must be preserved, especially at a time when we are driving financial inclusion.”

The official said the bank may soon introduce a revised consumer protection framework, but stopped short of confirming whether a new cap on fees is being considered.

In the past, the CBN has sanctioned several banks for excessive or unauthorized charges, including a landmark 2018 case where banks were asked to refund over N65 billion in excess deductions to customers.

Despite these interventions, critics argue that enforcement has waned and customers are again being left at the mercy of profit-driven institutions.

The Burden on the Vulnerable

While high-net-worth individuals and large firms often negotiate bespoke rates with their banks, it is the average Nigerian — teachers, petty traders, students — who bear the brunt of indiscriminate charges.

“I operate a daily savings account. Most of my customers save N500 to N1000 per day. Now, after all the savings, the bank takes away N300-N500 every month for SMS and other charges,” said Musa Lawal, an agent banker in Kaduna. “They are discouraging the poor from using the banking system.”

This sentiment could roll back some of the gains made in financial inclusion over the past decade. According to EFInA, the proportion of Nigerians with bank accounts rose from 48% in 2018 to over 64% in 2023. However, with increased costs and trust erosion, experts fear a reversal.

A Call for Fairness and Reform

Industry watchers say a new balance must be struck between commercial sustainability and customer protection. They warn that if left unchecked, the current trajectory could push more Nigerians into the informal economy and erode the credibility of the banking system.

“Banks are not charities, but they are also not licensed to exploit,” said Mr. Joseph Agada, Executive Director of the Centre for Public Policy and Development. “We need a transparent, customer-centered approach where charges are fair, justified, and disclosed. The regulator must not sleep on the wheel.

As the CBN weighs its response, customers like Mr. Uzo and Mrs. Ajayi continue to endure the slow bleed of charges they never agreed to — all while wondering who will come to their rescue.