By Esther Olaifa, JKNewsMedia Reporter
TRANSACTION CHARGES on money transfers have been scrapped by one of Nigeria’s financial institutions, Sterling Bank, marking a landmark shift in the country’s banking landscape.
The no-fee policy applies exclusively to users of the bank’s digital app, OneBank, making it the first major player in the sector to fully surrender revenue from transfers on its own platform.
“This is not a gimmick. This is the future. And it starts now,” said Abubakar Suleiman, Managing Director and Chief Executive Officer, during a press briefing in Lagos.
“For years, Nigerians have paid fees just to move their own money. We’re saying no more.”
He noted that the move is the result of a years-long digital transformation that saw the bank abandon its legacy European core system in favour of a homegrown digital platform designed for scale.
“Now capable of supporting 50 times its current customer base, the system already handles over 180 million transactions a year and operates on a private cloud infrastructure built for long-term resilience and demand,” Suleiman said during a panel session.
“We’ve engineered a platform that can absorb growth without breaking a sweat,” he also added. “It’s time to pass the benefits of that transformation back to the people.”
All new customers who onboard before 30 April will receive a complimentary AfriGo debit card alongside permanent access to fee-free transfers. But executives emphasised that the initiative is more than a promotional incentive.
“This is an economic statement,” said Suleiman. “We are taking sides with the customer, with the small business owner, with every Nigerian who’s been forced to pay for access to their own money.”
Obinna Ukachukwu, Growth Executive overseeing Consumer and Business Banking, said the strategy honours longstanding customers while welcoming a new community.
“We owe this to those who stuck with us,” he said. “If you join us in April, we’ll treat you like you’ve always been with us.”
He added that additional value offerings—targeted at individuals and businesses—would follow in the months ahead, bolstering financial stability and economic growth.
Despite forfeiting revenue from internal transfers, the bank will still bear the cost of inter-bank transaction fees. “We’ll pay when a customer transacts because it has to be paid for. But customers will only cover statutory taxes, nothing more,” Suleiman clarified.
The bold decision is underwritten by efficiencies in digital infrastructure, rather than subsidies or short-term losses. “We didn’t wake up one morning to do this. It’s well thought out. It will deliver value to customers, staff, and shareholders alike,” he stated.
He acknowledged that customers using physical branches would still incur traditional charges, since the model applies exclusively to digital transactions via OneBank. “If you use the app, we’ll take care of the charges. If you walk into a branch, that’s a different setup.”
Though initially open to all new users during April, the offer may later become invite-only, based on referrals from existing customers. “We don’t want to serve everyone. We want to serve the right people well,” Suleiman explained.
The underlying goal, according to him, is not just to eliminate fees, but to reshape the relationship between bank and customer—making room for credit access, emergency support, and loyalty-driven rewards.
“Our hope is that every client who banks with us won’t have to wait a week to pay a hospital bill or school fees,” he said. “We want to build deeper relationships, ones that actually matter.”
He encouraged others in the industry to follow suit. “If we all do it together, it will happen faster,” Suleiman said. “We believe Nigerian banks have the capacity to remove these fees and still deliver strong profits. We’re going to prove it.”
The initiative is designed to generate long-term profitability by focusing on other services—like credit, advisory, and investment—while sharply cutting operating costs through digital optimisation.
To shareholders, Suleiman made a direct assurance: “Expect more money than ever before. This strategy will grow the bottom line, even if short-term profits dip.”
Ukachukwu echoed the sentiment, noting that the programme is squarely focused on existing clients, whom he described as “the secret of our success.” Their commitment, he said, would help scale and sustain the initiative.
“Our clients are the future,” he said. “If they bring in people they already trust, it improves security, strengthens payment reliability, and makes our system more efficient.”
Looking ahead, he confirmed that new services would eventually allow clients not just to save, but to earn. “We’ll shift from customers needing to spend money to bond with us, to earning money while banking with us,” Ukachukwu said.
Government levies and taxes—including EMT—will still apply, as banks remain collection agents. “On those, we’re spectators. We comply,” Suleiman noted.
Ultimately, the initiative is not about price competition but value creation. “This is only the beginning,” said Suleiman. “Next, we help our customers make money from their own stored value. This is the future we’re building.”
