Nigerian Bank Slashes Transfer Fee to N5 per Transaction
- Dash Microfinance Bank has reduced transfer fees to a flat N5 per transaction to compensate for ATM card fee increase
- The bank said the move is designed to cushion customers from rising banking costs and promote financial inclusion
- It also highlighted broader digital services including bill payments, transport wallet funding, POS solutions for SMEs
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dash Microfinance Bank has decided to slash its transfer fees from the approve rate of N10 to N5 for every transaction.
The bank said the decision will help its customers in the face of rising banking charges after a new set of charges for cards was introduced in Nigeria.
Source: Facebook
Bank transfer fee drop
The move comes after a recent regulation by the Central Bank of Nigeria which, since the start of February, charges customers N1,500 for the issuance and maintenance of an ATM card, raising the total cost of banking for the common man.
To help alleviate these extra expenses, the bank has launched what it refers to as its Near Zero plan, which seeks to keep digital transactions affordable for users despite the increase in the cost of banking, with a flat fee of 5 which is expected to be charged on its digital banking platforms.
BusinessDay reports that Dash Microfinance Bank says the decision is intended to promote financial inclusion, reduce the cost burden on millions of Nigerians who make use of mobile banking services to facilitate their daily transactions, and remove barriers to digital payment services in the country.
The bank's Managing Director and Chief Executive Officer Rotimi Awofisibe stated that the bank designed the offer in response to the changing banking landscape.
Awofisibe said:
"We are focused on making banking easier and designed to fit our customers' lifestyles and banking needs. We saw the introduction of the 1,500 for cards and wanted to give something back to ensure transaction services are affordable.
"This 5 charge would help our students, traders, entrepreneurs to transfer money at their ease without worrying about exorbitant costs."
The bank noted that other services, besides the low transfer rates, in its ecosystem, are transportation wallets for travel expenses, bill payment, (electricity, TV) and a merchant facility that would help small and medium-scale businesses.
Source: Getty Images
The bank also noted that its POS service for businesses would still be offered as well as savings options including fixed deposits in a bid to encourage savings amongst its customer base, BusinessInsider reports.
The bank stated that it seeks to develop into a lifestyle banking digital service in a cashless Nigeria providing all essential financial services at competitive costs.
Bank charges in Nigeria
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has introduced a new set of rules which remove charges on several everyday banking services, scheduled to take effect on May 1, 2026.
The changes are contained in its revised Guide to Charges by Banks and Other Financial Institutions, which outlines consumer-focused reforms designed to improve transparency and reduce the burden of banking fees nationwide.
The document was signed by Dr Rita Sike, the CBN's director of the Financial Policy and Regulation Department.
Source: Legit.ng
