Sterling Bank has announced the removal of transfer charges on all local online transactions. It thus became the first major bank in Nigeria to introduce a zero-transfer fee policy. The bank announced this on Tuesday via a press release, showing a customer-centric approach and commitment to affordable banking. The policy takes effect immediately.
“…More Than a Financial Decision…”
He emphasized that the move would allow customers to enjoy seamless transactions without worrying about additional costs. Obinna Ukachukwu, Sterling Bank’s Growth Executive for Consumer and Business Banking, explained that a commitment to value, fairness, and inclusive banking guided the decision.
“This is more than a financial decision—it’s about redefining banking to put customers first,” Ukachukwu said. He added that Nigeria is facing economic challenges. These include inflationary pressures that have weakened purchasing power. The bank’s decision is expected to offer significant relief. It will benefit individuals and small business owners. These groups typically rely heavily on digital transactions.
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— Obinna Ukachukwu.
Ukachukwu further noted that the removal of transfer charges is not just a competitive strategy but a bold step to support Nigerians. “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 Bank customers will enjoy free transfers for all local transactions via the bank’s mobile app. The bank expects this initiative to translate into considerable savings. This is especially true for business owners and individuals who make frequent digital transactions.
A Timely Intervention
Sterling Bank’s zero-transfer fee policy is coming at a time when Nigerian bank customers grapple with multiple online service charges. Most banks currently charge transfer fees based on transaction amounts. Typically, costs range from ₦10 for transfers below ₦5,000, ₦25 for transfers between ₦5,001 and ₦50,000, and ₦50 for transactions above ₦50,000.
Additionally, customers are subject to a ₦50 Stamp Duty for transfers of ₦10,000 and above, a 7.5% Value Added Tax (VAT) on transfer fees, and a ₦50 Electronic Money Transfer Levy (EMTL) for transactions exceeding ₦10,000. USSD transactions also attract a fee of ₦6.98 per transfer, which varies by bank.
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Sterling Bank’s Removal of Transfer Charges: What’s Next?
While Sterling Bank’s decision is expected to benefit customers, concerns remain over other banking charges, especially ATM withdrawal fees. In February, the Central Bank of Nigeria (CBN) announced a new policy on ATM charges, removing fees for withdrawals made at a customer’s bank but implementing charges for withdrawals made at other banks.
The CBN also scrapped the policy that previously allowed customers to make three free ATM withdrawals per month. All ATM withdrawals at other banks will now be charged from the first transaction under the revised guidelines.
Under the new CBN guidelines, ATM withdrawals at other banks’ premises now attract a ₦100 fee per ₦20,000. If you withdraw from an off-site ATM—like those in malls, airports, or gas stations—you’ll pay an extra surcharge. This surcharge can be as high as ₦500 for every ₦20,000 withdrawn.
Sterling Bank’s zero-transfer fee policy could pressure other banks to follow suit. However, customers will still face other transaction costs across the banking sector. Even so, the move signals a major shift toward more customer-friendly banking. It remains to be seen how the industry will respond in the coming months.
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