CBN directs banks to report failed mobile, ATM transactions monthly

The Central Bank of Nigeria has directed banks and other financial institutions to submit monthly reports on failed electronic transactions across digital channels, as part of new compliance measures introduced in its revised Guide to Charges.

The directive was contained in a circular issued on April 21, 2026, titled “Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026 (The Guide)” and signed by the Director of the Financial Policy and Regulation Department, Dr Rita Sike.

According to the apex bank, Chief Compliance Officers and Heads of Information Technology in financial institutions are required to jointly render electronic reports of all failed transactions conducted via Automated Teller Machines, Point of Sale terminals, mobile channels, web platforms, and other electronic systems.

The circular read, “The Chief Compliance Officer and Head Information Technology shall jointly render monthly reports electronically, of all failed electronic transactions via various e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminate in the institution.”

The reports are to be submitted to designated CBN email addresses, reinforcing the regulator’s push for stricter monitoring of service failures across the banking system.

Beyond the reporting requirement, the CBN also introduced broader accountability measures, placing responsibility on top management of financial institutions to ensure strict adherence to the new guide.

Executive Compliance Officers or Managing Directors are mandated to cascade compliance expectations across all business units and ensure that banking systems are configured to apply only approved charges.

Specifically, the regulator directed that Heads of Information Technology must ensure that “all systems configurations only capture and allow posting of charges as permitted and described in this Guide,” while Chief Compliance Officers are to monitor strict compliance with the framework.

The revised guide, effective May 1, 2026, replaces the 2020 version and provides a comprehensive framework for charges across banking and other financial services.

The CBN explained that the review was aimed at promoting a safe and sound financial system, encouraging innovation, and expanding financial inclusion through lower tariffs on micropayments and transactions.

It added that the revised framework would strengthen oversight and accountability, encourage the adoption of electronic payment channels, and accommodate new industry participants.

A key feature of the proposed guide is the introduction of caps on several banking charges, alongside a requirement for banks to disclose fees clearly and allow customers to negotiate charges where applicable.

The document states that where fees are designated as negotiable, financial institutions must inform customers of their right to negotiate and agree on charges through verifiable means.

The guide also mandates that any new product, service, or charge not covered must receive prior written approval from the CBN, tightening regulatory control over fee innovation in the banking sector.

Under the new structure, charges apply across a wide range of institutions, including commercial banks, merchant banks, payment service banks, non-interest banks, microfinance banks, finance companies, primary mortgage banks, development finance institutions, credit guarantee companies, and mobile money operators.

To strengthen consumer protection, the CBN directed that non-credit-related charges can only be applied to the extent of funds available in a customer’s account, while any unpaid charges must be deferred without accruing interest.

The draft also introduces enhanced compliance requirements, mandating senior management and compliance officers to ensure that only approved charges are applied across banking systems.

In the detailed schedule of charges, the CBN set clear limits across multiple banking services. For electronic transfers, interbank charges are capped at no fee for transactions up to N5,000, N10 for transactions between N5,000 and N50,000, and N50 for transactions above N50,000.

ATM withdrawals from other banks are also regulated, with charges of N100 per N20,000 withdrawal on on-site machines and additional surcharges capped for off-site transactions.

The guide maintains zero charges on several customer-facing services, including account reactivation, account closure, and mandatory monthly statements, while introducing caps on others, such as statement requests to third parties and card issuance fees.

In the lending segment, the CBN requires all loan pricing to be quoted using the Annual Percentage Rate, ensuring that borrowers see the full cost of credit upfront. It also caps penalty charges on loan defaults at one per cent per month for naira loans and 0.25 per cent for foreign currency loans.

The regulator further outlined minimum disclosure requirements for loan agreements, covering borrower details, loan purpose, repayment schedule, collateral, interest rates, and penalties, as part of efforts to improve transparency in credit transactions.

The draft guide has been released for public comments, with stakeholders expected to submit their inputs to the CBN before May 8, 2026, ahead of its full implementation.

The PUNCH earlier in October 2025 reported that the CBN directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.