Banking
Banks Must Refund Excess Charges with Interest–CBN
By Dipo Olowookere
Banks operating in the country have been told to refund any excess charges from customers’ accounts with interest.
Central Bank of Nigeria (CBN) said it would force any bank engaged in such to adhere to the laid down rules and regulations.
Addressing newsmen on Tuesday in Abuja, the apex bank’s head of Consumer Complaints Management, Consumer Protection Department, Mr Fada David, disclosed that, “Part of the punitive measures is that if excess charges are discovered, they are refunded to consumers with interest.”
Mr David was speaking in respect of complaints by bank customers within the Federal Capital Territory (FCT) over excess charges by banks through Automated Teller Machine (ATM) withdrawals.
He said the Monetary Policy Circular of the CBN gives certain guidelines as to how much should be refunded to customers if excess charges are discovered.
“Part of the punitive measures is that if excess charges are discovered, they are refunded to consumers with interest,” he said.
He said the CBN monitors all banks regularly to make sure that they do not short-change customers.
Mr David urged bank customers to read the CBN’s Guide to Bank Charges circular to know those charges that their banks were allowed to charge and the correct amount.
“Consumers should consult this document to know how much they are expected to pay for services.
“When you go through it and in a situation where you see charges that you do not understand, you have the right to write your bank and get them to explain what the charges are.
“In a situation where it becomes clear that the customer was charged excessively, the customer should get them to reverse it.
“You have the right to know how much you are charged from operating your account and make sure that the bank only charges the specified amount,” he said.
Also commenting on the issue, Mr Oludamola Atanda of the Consumer Education Division, Consumer Protection Department of the CBN urged bank customers to demand for their statement of account monthly. He said it would help customers to monitor their accounts closely.
“You have the right to demand for the right product and services. The bank cannot force you to go for a specific product or loan facility. You have the right to choose.
“If they give you a product you do not like, you do not have to take it. Its important for us to understand this.
“There is also the issue of right to privacy. My bank should not share my details with just anybody. For instance, a wife cannot come and say she wants details of her husband’s account.
“Only by court order can an account details by revealed to a third party,” he said.
Mr Atanda stated that at times, customers complain about certain bank products because they were not properly informed about the products.
“If I am taking a product, my bank has the responsibility to educate me on that product.
“If it is a savings product, a customer should know how it works, how many times to withdraw in a month, how much interest to expect and the minimum deposit on the account.
“We are saying that you have the right to demand good service. Those are the things we want to let customers know,” he said.
During the interaction, some bank customers said fear making withdrawals using other banks ATMs because of the continued charge of N65 for every transaction.
According to the customers, most banks within Abuja have programmed their ATMs to dispense only N10,000 or less per transaction, thus ripping off customers withdrawing more than that amount.
The customers complained that if they had to withdraw N100,000 or more through other banks ATM, it meant they would lose so much money.
They, however, called on the CBN and other relevant authorities to look into the matter so as to help poor Nigerians.
By Modupe Gbadeyanka
The banking subsidiaries of Sterling Financial Holdings Company Plc, Sterling Bank and The Alternative Bank (AltBank), have met the full recapitalisation requirements of the Central Bank of Nigeria (CBN).
The chief executive of Sterling Holdings, Mr Yemi Odubiyi, said the recapitalisation strengthens the group’s ability to support economic activity while maintaining financial resilience.
“This exercise goes beyond regulatory compliance. It positions us to expand credit responsibly, accelerate innovation, and provide sustained support to businesses and households, while maintaining the discipline required in a challenging operating environment,” he said.
Mr Odubiyi noted that fully capitalising both Sterling Bank and The Alternative Bank reinforces the organisation’s dual-bank structure and its ability to serve conventional and non-interest segments.
“Our structure enables efficient deployment of capital across complementary markets and positions us to respond with agility to evolving customer needs,” he said, adding that strong investor participation across the capital programmes reflects confidence in the group’s governance and long-term strategy.
He further pointed out that the strengthened balance sheet provides a platform for the company’s next phase of growth.
“We are entering this phase from a position of significant financial strength, with the capacity to scale non-banking businesses, deepen digital capabilities, and pursue disciplined expansion opportunities while delivering sustainable value for shareholders,” Mr Odubiyi said.
Sterling Holdings achieved this feat after raising fresh capital between December 2024 and October 2025, positioning itself well ahead of the 2026 industry deadline.
In December 2024, it completed a N75 billion private placement, raising N73.86 billion in net proceeds. Of this amount, N68.8 billion was allocated to Sterling Bank and N5 billion to The Alternative Bank, strengthening the capital base of both institutions.
This was followed by a N28.79 billion rights issue, which was oversubscribed by N10.29 billion. Regulatory approvals in May 2025 enabled the allotment of N26.639 billion under the rights issue, with the oversubscription restructured into a private placement, enabling AltBank to meet the capital requirement for non-interest banks with national licences.
Sterling HoldCo further strengthened its capital position through an N88 billion public offer in October 2025, which recorded an oversubscription. The CBN has cleared the full amount of N96.69 billion for recognition as additional capital, while the Securities and Exchange Commission (SEC) approved the allotment of 13,812,239,000 shares.
In total, the group injected N153 billion into Sterling Bank and The Alternative Bank, bringing both institutions into full compliance with the revised capital requirements.
By Adedapo Adesanya
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for failing to account for N3 trillion in public funds, alleged to be missing or diverted.
The lawsuit followed the grave allegations contained in the latest annual report by the Auditor-General of the Federation, published on September 9, 2025. It includes over N629 billion paid to ‘unknown beneficiaries’ as part of the Anchor Borrowers’ Programme.
In the suit number FHC/ABJ/CS/250/2026 filed last week at the Federal High Court in Abuja, SERAP is seeking: “an order of mandamus to direct and compel the CBN to account for and explain the whereabouts of the missing or diverted N3 trillion of public funds, including detailed reports of how exactly the funds were spent.”
In the suit, SERAP argued that, “These grim allegations by the Auditor-General suggest grave violations of the public trust, the provisions of the Nigerian Constitution 1999 [as amended], the CBN Act, and anticorruption standards.”
SERAP is arguing that, “These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.”
According to SERAP, “These violations have seriously undermined the ability of the CBN to effectively discharge its statutory functions and the public trust and confidence in the bank. The CBN ought to be committed to transparency and accountability in its operations.”
SERAP is also arguing that, “Nigerians have the right to know the whereabouts of the missing or diverted public funds. Granting the reliefs sought would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”
The suit filed on behalf of SERAP by its lawyers: Ms Oluwakemi Agunbiade and Ms Valentina Adegoke, read in part: “According to the Auditor-General, the CBN in 2022 failed to remit over N1 trillion [N1,445,593,400,000.00] of ‘the Federal Government’s portion of operating surplus’ into the Consolidated Revenue Fund (CRF) account.”
“The Auditor-General fears that the money may have been ‘diverted.’ He wants the money recovered and remitted to the treasury.”
“The CBN also failed to recover over N629 billion [N629,040,000,000.00] paid to ‘unknown beneficiaries’ as part of the Anchor Borrowers’ Programme, a programme ‘meant to support farmers to ensure sustainable food production in the country,’” it said.
SERAP noted that the Auditor-General raised serious concerns over financial management at the apex bank, citing unaccounted intervention funds and unrecovered loans running into hundreds of billions of naira.
The report noted that the number of beneficiaries who collected certain disbursed funds remains unknown and that efforts to recover the money have been inadequate. Over N784.4 billion in unpaid and overdue loans issued between 2018 and May 2022 remain outstanding, with fears that diversion of funds may have worsened food security challenges. The Auditor-General has called for full recovery and remittance of the funds to the treasury.
The report also questions over N125.37 billion spent by the CBN in 2022 on intervention activities allegedly linked to national security, federal and state government engagements, and financial sector capacity building. According to the Auditor-General, there was no documentary evidence to support the expenditure, nor proof of approval by the National Assembly. He warned that the spending may not align with Section 2 of the CBN Act and could have been diverted, again urging that the funds be recovered and paid into the treasury.
Further scrutiny revealed that the CBN “unjustifiably” spent N1.79 billion on 43 operational vehicles for the Nigeria Immigration Service, despite no clear connection to the Bank’s statutory mandate and no evidence of delivery or procurement documentation. Additionally, 43 contracts worth over N189.5 billion allegedly suffered deliberate delays, leading to irregular contract variations of over N9.27 billion without proper records. The Katsina branch of the CBN also failed to recover over N90 million in COVID-19 intervention loans to SMEs.
In each case, SERAP noted that the Auditor-General expressed concern that the funds may have been diverted or mismanaged and demanded recovery and remittance to the treasury.
By Adedapo Adesanya
The Nigeria Deposit Insurance Corporation (NDIC) says depositors of failed banks in Nigeria can now access their insured funds within days.
The corporation said the development is a part of ongoing reforms aimed at strengthening confidence in the country’s financial system.
The chief executive of NDIC, Mr Thompson Sunday, disclosed this on Thursday at the NDIC Special Day of the 47th Kaduna International Trade Fair, noting that recent interventions had significantly improved the speed and efficiency of depositor compensation.
Represented by Mrs Regina Dimlong, the Assistant Director of Communications and Public Affairs, Mr Sunday said the corporation had successfully deployed the Bank Verification Number (BVN) system to facilitate prompt payments to customers of recently failed banks, including Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc.
“Depositors were paid within days of closure without the need to fill physical forms or visit NDIC offices.
“This is a part of our reform efforts to make depositor protection faster, simpler and more transparent,” he said.
According to him, the reforms were designed to restore public confidence in the banking system and prevent panic withdrawals, especially during periods of financial stress.
Mr Sunday explained that NDIC’s mandate spans deposit insurance, bank supervision, distress resolution and liquidation of failed banks, adding that the Corporation works closely with the Central Bank of Nigeria (CBN) to ensure early detection of risks in insured institutions.
He disclosed that in 2024, NDIC reviewed its deposit insurance framework, increasing coverage for depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks to N5 million, while customers of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are now covered up to N2 million.
He noted that the revised thresholds now guarantee full protection for about 99 per cent of depositors nationwide, particularly small savers and low-income earners.
The NDIC boss urged Nigerians to ensure their BVNs are properly linked to their bank accounts, stressing that this had become the primary channel for accessing insured deposits in the event of bank failure.
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