Central Bank of Nigeria Implements New Compliance Measures for Electronic Transactions
The Central Bank of Nigeria (CBN) has mandated that banks and financial institutions submit monthly reports detailing failed electronic transactions across various digital channels. This directive is part of a newly revised ‘Fees Guide’ aimed at enhancing compliance and accountability within the financial sector.
Issued on April 21, 2026, the circular titled “Exposure Draft Guide on Charges by Banks and Other Financial Institutions in Nigeria 2026” was signed by Dr. Rita Saike, Director-General of the Department of Financial Policy and Regulation. The new regulations require both the chief compliance officer and the information technology officer of each financial institution to collaborate on compiling a comprehensive electronic report of all unsuccessful transactions conducted via automated teller machines (ATMs), point-of-sale (PoS) terminals, mobile applications, web platforms, and other electronic systems.
The CBN’s announcement stresses that the monthly report of failed electronic transactions should be submitted electronically to designated email addresses provided by the central bank. This initiative underscores the regulator’s commitment to strengthening oversight and minimizing service failures across the banking system.
Moreover, the CBN has introduced expanded accountability protocols, placing responsibility on the management of financial institutions to ensure adherence to the new guidelines. The Executive Compliance Officer or Managing Director is specifically tasked with cascading compliance expectations throughout all business units and ensuring that banking systems are programmed to enforce only authorized fees.
As part of the new framework, information technology officers are directed to ensure that all system configurations can accurately capture and implement only the rates specified in the guide. At the same time, chief compliance officers are responsible for monitoring adherence to these directives rigorously.
The revised guide, which takes effect on May 1, 2026, replaces its 2020 predecessor and establishes a detailed framework governing fees across both banking and financial services. The central bank has indicated that the review aims to foster a secure financial environment, promote innovation, and enhance financial inclusion, particularly by lowering tariffs on micropayments and transactions.
Among the key features of the new guide are fees caps on specific banking services and the mandate that banks transparently disclose their fees to customers. Institutions must inform clients about their rights to negotiate fees when applicable. Furthermore, the guide stipulates that any new banking products, services, and fees not already covered must receive prior approval from the CBN to ensure regulatory compliance.
The new fee structure applies broadly to various financial entities, including commercial banks, merchant banks, payment service banks, microfinance institutions, and mobile money operators. To bolster consumer protection, the CBN has instructed that non-credit related charges may only be applied to the available funds in a customer’s account, with any unpaid charges deferred without interest accumulation.
The guide outlines specific fee limits for various banking services: for example, interbank electronic transfers will incur no fees for transactions up to 5,000 Naira, a fee of 10 Naira for transactions between 5,000 and 50,000 Naira, and 50 Naira for amounts exceeding 50,000 Naira. Additionally, the regulations set a fee of 100 Naira for every 20,000 Naira withdrawn from ATMs of other banks, ensuring caps on additional fees for off-site transactions.
In the lending sector, the CBN has mandated that all loan pricing be presented using an annual percentage rate, making it easier for borrowers to understand the total cost of credit from the outset. Also outlined are clear penalties for loan defaults, with a maximum of 1% per month for naira loans and 0.25% for foreign currency loans. Minimum disclosure requirements for loan agreements, including borrower details, loan purposes, repayment schedules, collateral, interest rates, and penalties, aim to enhance transparency in credit transactions.
As part of the regulatory process, the draft guide is open for public comments, with stakeholders invited to submit their feedback to the CBN by May 8, 2026, prior to its full implementation. This initiative aligns with a broader effort by the CBN to enhance consumer protection and restore trust in Nigeria’s banking system, as highlighted by a previous directive mandating financial institutions to issue refunds for failed ATM transactions within 48 hours.
