Sterling Bank has announced a zero-transfer-fee policy, making it the first Nigerian commercial bank to eliminate charges on online transfers. The move, which takes effect immediately, is expected to ease the financial burden on customers who have long complained about excessive banking charges.
For years, Nigerian depositors have expressed frustration over the weight of bank fees on their savings, as banks deduct various charges instead of paying interest on deposits. Many customers argue that instead of seeing their money grow, their balances shrink due to transfer fees, SMS alert charges, account maintenance fees, and other deductions imposed by financial institutions.
Sterling Bank’s announcement initially sparked skepticism, as the policy was unveiled on April 1, 2025—April Fools’ Day. Many assumed it was a marketing gimmick rather than a genuine policy shift. However, the bank quickly reassured customers that the move was real and permanent.
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The bank has since clarified that any customers charged transfer fees on April 1 between midnight and 8 a.m. would be refunded. Sterling Bank explained that the policy officially took effect on Tuesday at 8:00 a.m. and that any charges before that time were unintentional.
Sterling Bank’s Growth Executive, Obinna Ukachukwu, said the bank’s decision was based on a commitment to fairness and inclusivity rather than financial gains.
“We believe access to your own money shouldn’t come with a penalty. This is more than a financial decision; it’s a values-based one. It reflects our commitment to making banking fair, inclusive, and truly customer-focused,” he stated.
Ukachukwu also acknowledged that while Sterling Bank is not the largest bank in Nigeria, it is bold and forward-thinking, aiming to set a new standard in digital banking.
Nigerian Banks Profit Heavily from Customer Fees
Banking fees have become a significant revenue source for Nigerian banks, generating billions of naira annually. In their 2024 full-year financial reports, two of Nigeria’s biggest banks—Zenith Bank and United Bank for Africa (UBA)—earned staggering amounts from banking fees alone.
Zenith Bank made N208 billion in banking fees income, while UBA earned an even higher N350 billion. To put this in perspective, these figures exceed the total annual profit of many publicly traded Nigerian companies.
For instance, MRS Oil Nigeria Plc, a major petroleum marketing company, made less than N10 billion in profit after tax in 2024—a tiny fraction of what UBA and Zenith Bank earned from fees alone. This highlights the dominance of banking fees as a key profit driver in the financial sector, making it unlikely that banks will willingly let go of these charges.
Will Other Banks Follow Suit?
Despite the positive reception from customers, there is little hope that this move will compel other banks to stop charging online transfer fees. The policy is entirely at the discretion of each bank, and since the Central Bank of Nigeria (CBN) has officially approved transaction charges, banks are not violating any regulations by imposing them.
With billions being made annually from fees, most Nigerian banks have little incentive to follow Sterling Bank’s lead. Instead, competitors might continue their current practices, confident that most customers will hesitate to switch banks over transfer fees alone.
Sterling Bank’s initiative, a rare move in an industry that heavily profits from customer fees, has been met with enthusiasm on social media, with many customers tagging rival banks and urging them to adopt similar policies. While some viewed Sterling Bank’s decision as a potential game-changer, the reality is that it may not force other banks to follow suit.
However, as long as the CBN continues to allow banks to impose these fees, other financial institutions are unlikely to abandon them voluntarily. It is believed that banking in Nigeria is structured to benefit financial institutions more than depositors, and a single bank’s decision—no matter how groundbreaking—may not be enough to shift the industry’s approach.