Nigerians Rush to Open Accounts as Bank Announces 100% Free Charges for Transactions
- The decision by Sterling Bank to remove all transfer charges has seen an uptick in the number of accounts opened
- Leading the rush is former aviation minister Chief Osita Chidoka, who has decided to open an account with the bank
- Data shows that nine banks rake in over N922.5 billion in fees as customers decry rising charges
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Former Aviation minister, Chief Osita Chidoka, is among the Nigerians eager to open a personal account with Sterling Bank, following the bank's decision to eliminate charges on local electronic transactions.
The no-charge transactions apply to customers sending to accounts of Sterling Bank and also to other banks.
Source: Getty Images
On April 1, Sterling Bank made headlines by announcing it would remove all local transfer charges on its OneBank platform.
Initially met with skepticism, with many wondering if the announcement was an April Fools' prank, the bank confirmed the policy was genuine and effective immediately.
The bank post on X reads:
"Nigerians are no fools! Enough is enough. No more quiet suffering. We’re doing our part by cancelling transfer fees. Let the other banks copy.
That's right! As of today: Sterling Bank will NOT take any money for itself for: Mobile app, online - 100% free!, Interbank transfers - 100% free!, ATM card issuance - 100% free!"
Ex-minister opens Sterling Bank account
Chidoka, who had earlier taken to social media to share excitement over Sterling Bank's decision to remove local transaction charges, visited the bank's Abuja headquarters on Friday to open a personal account.
He said his decision is a show of support for the bank's free transactions on e-transfers.
He wrote on X:
"Sterling Bank did the math—and still chose the people. They ditched transfer fees.
"On Friday morning, I will open an account at a Sterling Bank branch in Abuja to reward the bank for removing transfer charges, which other banks have refused to do.
"In 2023, I called on the CBN and President Tinubu to ease the burden on Nigerians by stopping the hidden, exploitative charges Nigerians face in the banking system. They didn’t act.
Sterling Bank has shown us a better way. They’ve proven that you can run a profitable, tech-driven, modern bank without extracting rent from the people.
So yes, I’m acting. Opening a Sterling Bank account is a statement of values. A protest against exploitation. And a demand for transparency, innovation, and fairness in Nigerian banking.
Ex-governor joins Chidok
Dr. Okezie Ikpeazụ, the former governor of Abia State, also joined Chidoka and many young people in opening an account with Sterling Bank to show his support for their no transfer fee initiative.
Chidoka compared Sterling Bank’s commitment to leading the zero transfer charge initiative to Glo’s groundbreaking introduction of per-second billing during the early days of GSM in Nigeria.
Updating on his X account, Chidoka tweeted:
"Like @glonigeria, which led the way in per-second billing, Sterling Bank is leading the charge for free transfers, and I hope other banks will follow suit. Nigerians need a respite from needless charges."
Chidoka Urges Nigerians to Open Sterling Bank accounts
Chidoka commended Sterling Bank for putting people before profits by waiving an estimated N13.56 billion in annual transfer fees, representing about 4.13% of its total revenue.
He described the move as a bold stand for fairness in a time when many Nigerians are struggling with rising inflation and reduced disposable income.
His campaign reflects growing dissatisfaction with the banking sector and calls on Nigerians to reconsider their choice of banks, encouraging support for institutions that prioritize customer welfare.
He declared:
"Let’s make Friday #OpenSterlingAcct Day. Let your money stand for fairness, transparency, and innovation. Tag your bank. Tag your friends. Tell them: We’ve seen the numbers, and we’re done paying for digital oppression."
Chidoka also challenged other banks to follow Sterling’s lead, noting that transfer fees make up only a small fraction of their total earnings.
Sterling Bank’s decision has sparked renewed debate online about the fairness of bank charges in Nigeria, with many calling on the Central Bank of Nigeria and other regulators to step in.
Also reacting to Sterling Bank's decision, Dr Joe Abah wrote:
"Well done to Sterling bank for canceling the avaricious, unconscionable and indefensible transfer fees that Nigerian banks charge.
"I understand it will cost them some N13 billion in revenue but hope that the loss would be offset by revenue from new Sterling account openings."
CBN’s new move crashes PoS charges
Earlier, Legit.ng reported that PoS operators had adjusted their withdrawal and deposit charges.
The decision followed the implementation of Opay, Moniepoint, and other fintech companies to a N50 EMTL fee on every N10,000 deposit in their customers' accounts.
This was part of the Nigerian government's drive to generate additional revenue from digital financial services.
This article has been updated by head of business desk, Victor Enengedi, with additional information.
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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 10 years of experience in writing and (copy)editing.
