Ex-minister Reacts As Sterling Bank Scraps Transfer Fees, Woos Other Banks To Do Same
- Ex-aviation minister Osita Chidoka announced he will open an account with Sterling Bank to support its decision to eliminate transfer fees
- He praised the bank for prioritizing customers' interest over profits by giving up N13.56 billion in annual transfer charges
- Chidoka also challenged other banks to follow Sterling’s example and called on Nigerians to choose banks that prioritize customer welfare
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Tech, Banking and the Economy.
Former Aviation Minister, Osita Chidoka, has said he will open an account with Sterling Bank to support its decision to remove transfer fees, which he sees as a step against unfair banking charges.
Sterling Bank surprised many Nigerians on April 1, 2025, by announcing that it would no longer charge fees for interbank transfers, mobile and app transactions, and ATM card issuance.
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The bank said the decision was meant to ease financial burdens on Nigerians and encouraged other banks to do the same. This comes as concerns grow over high banking fees, which many see as unfair.
In a statement on Thursday, April 3, Chidoka praised the move, saying the bank prioritized people over profits by giving up an estimated N13.56 billion in yearly transfer fees, which make up 4.13% of its total revenue.
He said:
“They walked away from N13.56 billion in transfer charges—4.13 per cent of their total revenue—to give Nigerians breathing room. Other banks could, too—but they won’t.”
The former minister compared Sterling Bank’s decision to other major banks that still charge transfer fees, noting that Zenith Bank, GTCO, UBA, and First Bank made a total of N186 billion from these fees in 2024.
Mr. Chidoka claimed that the N186 billion earned from transfer fees is nearly 60% of Yobe State’s total budget and is higher than the combined federal funding allocated to six universities—UNN, ABU, UI, OAU, UNICAL, and UNILAG —in the 2025 budget.
He claimed that eliminating transfer fees would have little impact on the earnings of big banks.
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He said:
“GTCO: N15.47 billion from transfer charges—just 1.22 per cent of revenue. UBA: N48.36 billion—1.52 per cent. Zenith Bank: N80.05 billion—2.02 per cent. First Bank: N42.55 billion—1.41 per cent. These aren’t make-or-break figures for any of them. They’re just comfortable profits from charging ordinary Nigerians N10 to N50 per transfer—millions of times over.”
Mr. Chidoka urged Nigerians to rethink their choice of banks, highlighting the need to support institutions that prioritize customers.
His campaign reflects growing public frustration with the banking sector, as rising inflation and economic hardship continue to reduce people’s disposable income.
Through his initiative, which he calls #OpenSterlingAcct Day, he hopes to encourage Nigerians to open accounts with banks that remove unnecessary fees.
He also challenged other banks to follow Sterling Bank’s example, pointing out that transfer fees make up only a small portion of their total earnings.
Recall that the bank recently increased the salaries of its over 3,000 employees across several cadres by 35%.
Sterling Bank’s decision has sparked fresh debate online about the fairness of bank charges in Nigeria, with many urging the Central Bank of Nigeria and other regulators to take action.
Sterling Bank secures $75 million deal
Meanwhile, Legit.ng previously reported that Sterling Bank Plc signed a $75 million agreement with the African Export-Import Bank to support Nigeria’s non-oil exports.
The bank stated that the funds, obtained at the recently concluded Intra-Africa Trade Fair in Cairo, Egypt, would help tackle foreign exchange challenges.
According to Punch, the bank said the deal would strengthen trade financing and promote trade within Africa.
