CBN seeks uniformity in charges across financial system

From Adanna Nnamani, Abuja

The Central Bank of Nigeria (CBN) has introduced a revised Guide to Charges for Banks and Other Financial Institutions, aimed at standardising fees across the financial system, reducing arbitrary pricing, and improving transparency in financial services.

The apex bank in a circular issued recently, said the new framework provides a comprehensive list of allowable charges for services rendered by banks, fintech firms, and other regulated financial institutions, while also clearly distinguishing between regulated and negotiable fees.

According to the CBN, the objective is to eliminate inconsistencies in pricing and ensure that customers are not subjected to hidden or exploitative charges within the financial ecosystem.

It further stressed that financial institutions will no longer be allowed to introduce any new or unapproved charges without prior regulatory approval.

The regulator explained that some charges may still be subject to negotiation between customers and financial institutions, depending on the nature of the service, as clearly stated in the guide.

“The Guide provides a comprehensive list of allowable charges for services offered by banks and other financial institutions.

“Any charge not included in this Guide shall require the prior approval of the Central Bank of Nigeria before implementation,” the apex bank said.

Under the revised framework, banks and other service providers are also required to fully disclose all applicable charges to customers before completing any transaction, a move the CBN says is aimed at strengthening consumer protection and trust.

“Financial institutions are required to fully disclose all applicable charges to their customers in a clear and transparent manner.

“Certain charges may be negotiable between financial institutions and their customers, as clearly indicated in the Guide,” it added.

The CBN also emphasised that the new framework applies broadly across banks, fintech companies, and other financial service providers under its regulatory oversight, with strict enforcement measures in place.

It warned that institutions found in violation of the provisions would face sanctions, as part of efforts to ensure full compliance across the sector.

According to the apex bank, the policy is designed to ensure uniformity, transparency, and fairness in the financial system while strengthening consumer confidence and promoting healthy competition among operators.

“The Guide applies to banks, other financial institutions, and relevant service providers under the regulatory purview of the CBN.

“The CBN will continue to monitor compliance and impose appropriate sanctions for violations.

“The objective of this Guide is to ensure uniformity, transparency, and fairness in the application of charges across the financial system,” it said.

Stakeholders in the financial sector have welcomed the development, describing it as a timely intervention that will enhance accountability, improve service delivery, and protect customers from arbitrary deductions.

The revised framework is expected to align with ongoing reforms in the banking and fintech space, especially as digital financial services continue to expand rapidly across Nigeria.