Sterling Bank has announced the removal of transfer fees on all local online transactions, becoming the first major bank in the country to introduce the zero-transfer fee policy.
Announced on Tuesday via a press release, Sterling Bank noted that the move is a testament to its commitment to customer-centric banking and providing a cost-effective service for its customers while declaring that the transfer fee policy is real and effective immediately.
Describing the decision as one guided by value, Sterling Bank’s Growth Executive in charge of Consumer and Business Banking, Obinna Ukachukwu, said that the approach aimed at ensuring fair and inclusive banking where its customers operate in a convenient environment and enjoy such benefits.
“This is more than a financial decision—it’s about redefining banking to put customers first,” he stated.
Amid the hurdle of inflationary pressure that has negatively impacted the purchasing power of Nigerians, the move by Sterling Bank comes as a significant relief to customers and small business owners who transact frequently through the digital medium.
In addition, Ukachukwu expressed that the bank’s decision solely lies in making its customers comfortable and is more than just a competitive strategy. “We’re not yet the biggest bank in Nigeria, but we’ve been the boldest. Sterling fearlessly believes in the future of Nigeria, and this is us backing Nigerians with more than words,” he added.
Under the new policy, Sterling customers will enjoy free transfers for all local transactions conducted via the bank’s mobile app. This translates into significant savings, particularly for individuals and business owners.
Sterling Bank’s zero-transfer fee policy comes at a critical period where Nigerian bank customers face several online service charges for their transactions.
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Basically, Nigerian banks generally charge online transfer fees based on the transaction amount, with fees ranging from N10 for transfers below N5,000 to N25 for transfers between N5,001 and N50,000, and N50 for transfers above N50,000.
Aside from this, customers face a Stamp Duty charge of N50 for each transaction of N10,000 and above, Value Added Tax (VAT) of 7.5 per cent applied to transfer fees, and Electronic Money Transfer Levy (EMTL): N50 on electronic transfers of N10,000 and above.
On the other end, people who use USSD are charged N6.98 per transfer conducted through USSD codes, and the fee varies by bank.
Sterling Bank’s Zero-transfer fee amid ATM Charges
While the Sterling Bank zero-transfer introduction might pose a competitive challenge to other Nigerian banks to follow suit, the move reflects on other fees customers bear outside the digital transfer level, such as ATM withdrawal charges.
Recall that in February, the Central Bank of Nigeria (CBN) introduced new ATM charges, stating that customers who are withdrawing at the ATMs of their own banks will not be required to pay the charges. But when withdrawing from another bank or financial institution’s ATM in Nigeria, if the withdrawal takes place on-site (within the bank’s premises), such a withdrawal would attract a charge of 100 naira for every 20,000 naira withdrawal.
“In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,” the CBN stated.
When the ATM is not located on the bank’s premises (off-site) such as ATMs located in shopping malls, airports, grocery stores, or gas stations, providing access to banking services away from the traditional bank premises, such a withdrawal attracts the basic charge of 100 naira for 20,000 naira as well as a surcharge of not more than 500 naira per 20,000 naira withdrawal.
The CBN also announced the discontinuation of the three free withdrawals per month on ATM cards. Before now, it used to be that every ATM user had three free withdrawals per month before they started getting charged on the fourth.
However, after this review, the three free monthly withdrawals allowed for Remote-On-Us (bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply per the CBN.
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