How to Avoid Hidden Fees in Nigeria Banks

Banking in Nigeria has become more convenient with digital platforms, mobile apps, and ATMs, but many customers still face a common challenge—hidden fees.

From unexpected maintenance charges to transfer costs that were never clearly explained, these fees can quickly eat into your savings without you even noticing.

For individuals and businesses trying to manage their finances wisely, understanding how banks structure their charges is no longer optional—it’s essential.

In this guide, we’ll break down the common hidden fees in Nigerian banks, explain why they exist, and most importantly, show you practical steps to avoid them. By the end, you’ll know how to keep more of your hard-earned money in your account while still enjoying the full benefits of modern banking.

1. Understand Common Hidden Fees in Nigerian Banks

Before you can avoid hidden charges, you first need to recognize where they come from. Nigerian banks apply different service fees—some are openly stated, while others quietly appear on your statement. Let’s break them down:

1. SMS Alerts
   Banks deduct small amounts for every debit and credit alert via SMS. While it looks minor, these fees add up monthly, especially for frequent transactions.

   • Tip: Switch to free email alerts if your bank offers it, or request mobile app notifications instead.

2. ATM Card Maintenance Fees
   Many banks charge a periodic fee just for keeping your debit or ATM card active—even if you rarely use it.

   • Tip: If you don’t need multiple cards, stick to just one and monitor the charges.

3. Account Maintenance Charges
   This fee is taken monthly or quarterly, usually for current accounts. Savings accounts too may attract small deductions under “account maintenance.”

   • Tip: Review your account type and switch to one with fewer maintenance costs if possible.

4. Transfer and USSD Charges
   Every time you send money via mobile app or USSD, banks (and sometimes telecoms) deduct fees. Although small, they can pile up.

   • Tip: Use your bank’s app or internet banking where fees might be lower than USSD.

5. Withdrawal Fees at Other Banks’ ATMs
   After your third withdrawal in a month at another bank’s ATM, you’ll be charged for each additional one.

   • Tip: Plan withdrawals ahead of time and stick to your own bank’s ATMs.

6. Dormant Account Penalties
   If your account remains inactive for a long period, banks may classify it as dormant and apply charges to reactivate it.

   • Tip: Keep your account active by making small deposits or withdrawals every few months.

Why this matters: When you understand these fees, you can anticipate them and take proactive steps to reduce or eliminate them. That’s how you stay one step ahead of your bank and protect your hard-earned money.

2. Opt for Email Alerts Instead of SMS Alerts

One of the most common hidden charges in Nigerian banking is the fee for SMS transaction alerts. Most banks charge between ₦4 and ₦10 per message, and while that might seem small, it can add up to hundreds or even thousands of naira each year, especially if you make frequent transactions.

These alerts are important because they help you track your account activity and detect suspicious transactions quickly — but you don’t have to pay for them.

Better Alternative:

Switch to email alerts, which are usually free of charge in most Nigerian banks. With email alerts, you’ll still receive real-time notifications of deposits, withdrawals, and transfers — just without the extra cost.

How to Make the Switch:

• Visit your bank branch and request that SMS alerts be disabled and replaced with email alerts.

• Update your email address on file to ensure you receive notifications without delays.

• Check your spam folder regularly, especially after switching, to make sure alerts are coming through.

Why it matters: Over time, this simple change can save you a surprising amount of money — money that’s better spent or saved elsewhere. Plus, email alerts give you an easy digital record of your transactions, which can be useful for budgeting or tracking expenses.

3. Use Your Bank’s ATM or Mobile App

Another common source of hidden charges comes from withdrawing cash at ATMs that do not belong to your bank.

In Nigeria, banks typically allow only the first three withdrawals per month on another bank’s ATM to be free. After that, you are charged for every additional withdrawal. While the amount may seem small, it adds up quickly if you use other banks’ ATMs frequently.

How to Avoid These Fees:

• Use your bank’s ATMs whenever possible. Planning ahead and withdrawing enough cash at once can save you repeated trips and unnecessary charges.

• Adopt mobile banking. Instead of withdrawing cash, you can use your bank’s mobile app or USSD service to transfer funds directly to others. This reduces your need for cash and helps you avoid ATM charges altogether.

• Consider cashless options. For bills, shopping, or daily expenses, use POS machines, bank apps, or online transfers instead of withdrawing cash.

Why it matters: Minimizing your reliance on other banks’ ATMs not only saves you money but also encourages smarter money management. By using your own bank’s channels or cashless payment options, you stay in control of your funds and reduce the small, hidden deductions that eat into your balance.

4. Choose Accounts with Lower Charges

Not all bank accounts are created equal. While traditional current and savings accounts often come with regular maintenance charges, some banks now provide alternatives that are cheaper or even free.

For example, certain digital savings accounts or special account types carry zero account maintenance fees, making them a smarter option for customers who mostly transact online.

Why This Matters:

Regular maintenance charges may look small, but over time they can significantly reduce your balance. Choosing an account with lower or no charges means you keep more of your money, especially if you make frequent deposits, transfers, or withdrawals.

How to Take Advantage:

• Ask about digital accounts. Many Nigerian banks have introduced mobile-only or digital savings accounts designed for customers who rarely visit branches.

• Compare banks before opening an account. Some banks are more customer-friendly and transparent with fees. Take time to research and find the one that best suits your lifestyle.

• Switch if necessary. If your current account type is draining you with high fees, consider opening a new account that offers lower charges and gradually move your transactions there.

Bottom Line: By choosing the right account type, you avoid unnecessary deductions and enjoy a banking experience that fits your needs—especially if most of your transactions are digital.

5. Track Your Bank Statements Regularly

One of the simplest but most effective ways to spot hidden fees is by keeping a close eye on your bank statements. Many customers ignore the monthly statements sent by their banks—whether by email or physical copy—without realizing that these documents reveal exactly how their money is being deducted.

Why This Matters:

Hidden charges often slip under the radar because they appear as small deductions spread across different transactions. Without regular checks, you may never notice them until they have taken a significant toll on your balance.

How to Stay Alert:

• Read monthly emails or SMS summaries carefully. Even if the amounts seem small, add them up over time to see their real impact.

• Download or request your full statement. This allows you to review transaction by transaction and identify patterns in charges.

• Question unclear deductions. If you see charges you don’t understand, contact your bank immediately for clarification or reversal if the fee was wrongly applied.

• Keep personal records. Compare your expected balance with the one shown by your bank to quickly catch differences.

Bottom Line: Regularly monitoring your bank statements keeps you informed, helps you identify hidden fees early, and ensures that your bank is accountable for every deduction. It’s a habit that protects your money and strengthens your financial control.

6. Avoid Dormant Accounts

In Nigeria, when a bank account is left inactive for a long period—usually 6 to 12 months—it can be classified as dormant. Dormant accounts may attract reactivation charges, and in some cases, you’ll need to go through additional processes before you can access your funds again. This not only costs money but also wastes valuable time.

Why This Matters:

Many people open multiple accounts across different banks and then forget about them. Over time, these idle accounts either rack up maintenance charges or get flagged as dormant, creating unnecessary expenses and inconvenience.

How to Prevent Dormancy Fees:

• Close accounts you don’t use. If you opened an account you no longer need, it’s better to close it than leave it idle.

• Keep accounts active with small transactions. Even a simple deposit or transfer every few months is enough to keep an account active.

• Consolidate your banking. Stick with one or two accounts that meet your needs instead of spreading funds across many accounts.

Bottom Line: Avoiding dormant accounts helps you save money, reduce stress, and stay organized in your banking. By keeping only the accounts you truly use and maintaining occasional activity, you’ll steer clear of hidden fees and keep your finances simple.

7. Negotiate and Ask Questions

Many customers assume that bank fees are non-negotiable, but this is not always true. While certain charges are set by regulation, others are at the discretion of the bank.

For example, loyal customers, high-value account holders, or businesses that transact regularly may have some room to negotiate reduced fees or even waivers.

Why This Matters:

Banks value customer retention. If you have been consistent with your bank, either as an individual or a corporate client, you may be entitled to preferential treatment. But this only happens when you ask—most banks won’t volunteer this information.

Practical Steps:

• Seek clarification. Whenever you notice a charge you don’t understand, call or visit your bank to get a full explanation.

• Negotiate where possible. If you feel a fee is too high, request alternatives or ask if it can be waived.

• Explore account upgrades. Some account tiers come with reduced or no charges, especially for customers with larger balances or higher transaction volumes.

• Document your interactions. Always keep a record of your requests and the bank’s responses to avoid future disputes.

Bottom Line: By asking the right questions and negotiating when possible, you show your bank that you are an informed customer. This not only helps you avoid unnecessary charges but also strengthens your relationship with your bank.

Conclusion

Avoiding hidden bank charges in Nigeria is not only possible—it’s within your control if you take the right steps. The key is to stay informed and proactive.

By switching to email alerts, monitoring your bank statements regularly, choosing account types with lower fees, and avoiding unnecessary transactions on other banks’ ATMs, you can significantly reduce the deductions that quietly drain your balance.

Also, keeping your accounts active, consolidating the ones you don’t use, and negotiating when possible all put you in a stronger financial position. Over time, these small but deliberate actions can save you thousands of naira each year.

Remember, banking should make managing your money easier, not more expensive. Your money is meant to work for you—not your bank. Stay alert, ask questions, and take charge of your finances.

Frequently Asked Questions

How to prevent hidden fees?

Hidden fees are small, often unnoticed charges that banks or financial institutions impose on customers. They may come in the form of overdraft fees, maintenance charges, ATM withdrawal costs, or penalties for late payments. Preventing these fees requires awareness, discipline, and careful financial planning.

The first step in preventing hidden fees is to read the terms and conditions of your account agreement thoroughly. Many people skip over these documents, yet they contain crucial information about charges.

By understanding when fees apply, you can take proactive steps to avoid them. For example, some accounts require you to maintain a minimum balance; if you are aware of this, you can plan your spending accordingly.

Secondly, monitor your account activity regularly. With the rise of mobile banking apps, it has become easier to check your balance, transactions, and alerts in real time. Doing so prevents surprises, such as overdraft charges, because you will always know how much money is available.

Another practical way is to choose the right type of account. Some banks offer accounts specifically designed to be fee-free, especially for students, low-income earners, or digital-only customers. Opting for accounts with no monthly maintenance or transaction charges can eliminate unnecessary deductions.

Also, be mindful of ATM withdrawals. Using an ATM outside your bank’s network often attracts fees. To prevent this, try to withdraw from your bank’s machines or use digital payment options to minimize cash needs.

Setting up alerts and notifications is another preventive measure. Many banks allow customers to receive messages when their account balance drops below a certain level. This helps you avoid overdraft fees and other penalties.

Additionally, avoid unnecessary services you don’t need. For example, signing up for overdraft protection might sound useful, but it often comes with steep charges. If you manage your finances carefully, you may not need it.

Lastly, communicate with your bank. Sometimes fees can be waived if you call customer service and explain the situation, especially if it is your first time being charged. Building a relationship with your bank also makes it easier to negotiate account terms that suit your needs.

In conclusion, preventing hidden fees boils down to being informed, proactive, and cautious. By reading the fine print, monitoring your account, making use of technology, and maintaining good banking habits, you can protect yourself from losing money unnecessarily.

Which bank has no hidden charges?

The idea of a bank with no hidden charges is very appealing, especially to customers tired of unexplained deductions.

However, while many banks market themselves as “zero-fee” or “transparent,” it is important to understand that banks must generate revenue somehow, so complete elimination of fees may not be possible.

Instead, some banks are recognized for minimizing costs and being upfront about their charges.

In many countries, digital-only banks (neobanks) are known for having fewer fees compared to traditional banks. These banks often operate entirely online, which means they save on infrastructure costs like branches and staff.

They pass on these savings to customers by removing charges for things like account maintenance, card issuance, or transfers. Examples globally include banks like Chime in the U.S. or Monzo in the U.K.

In Nigeria, several digital banks such as Kuda Bank, Opay, and PalmPay market themselves as “no hidden charges” banks.

Kuda Bank, for instance, is widely referred to as “the bank of the free” because it provides free transfers (up to a limit), no account maintenance fees, and transparent transaction notifications.

Similarly, Opay has gained popularity for low transaction costs and cashback benefits, making it appealing to customers looking to avoid hidden deductions.

That said, even banks that advertise “no hidden charges” may still impose regulatory fees or government-mandated charges.

For example, in Nigeria, stamp duty fees on certain transactions are not imposed by the bank itself but by government regulation. Hence, no bank can completely eliminate such deductions.

If you are seeking a bank with no hidden charges, here are some tips:

1. Look for digital banks – They usually have the least charges.

2. Compare transparency – Check if the bank provides instant alerts for every transaction, so nothing goes unnoticed.

3. Check customer reviews – Other customers’ experiences often reveal whether a bank truly has no hidden charges.

4. Avoid complex accounts – Stick to simple savings or current accounts that don’t include unnecessary features.

In conclusion, while no bank can completely guarantee zero charges because of regulatory deductions, digital banks like Kuda, Opay, and PalmPay in Nigeria and international neobanks globally come closest to offering “no hidden charges.”

The key is to research carefully and choose a bank whose policies align with your financial needs.

What is the best way to avoid banking fees?

Banking fees can quietly eat into your hard-earned money if you are not paying close attention. These charges may include monthly maintenance fees, overdraft charges, ATM withdrawal costs, transfer fees, and even inactivity penalties.

While some of these fees may seem unavoidable, there are proven ways to reduce or completely avoid them.

The best way to avoid banking fees is to be intentional about the type of account you open and how you manage it. One of the first steps is to choose a fee-friendly bank.

Digital banks, in particular, are well-known for low or zero fees. They usually offer free transfers up to a limit, no maintenance charges, and lower costs compared to traditional banks.

Another effective strategy is maintaining the minimum balance required by your bank. Some banks charge monthly fees if your balance drops below a certain threshold. If you know this requirement, keeping your account above the minimum will save you from unnecessary deductions.

You can also avoid banking fees by using your bank’s own ATMs and digital platforms. Many customers lose money by withdrawing from third-party ATMs, which come with charges. Whenever possible, withdraw from your bank’s machines or opt for mobile transfers and digital wallets to bypass these costs.

Overdraft charges are another common source of fees. To prevent them, you should regularly monitor your account balance through banking apps, SMS alerts, or email notifications.

Some banks even allow you to disable overdraft services entirely. This ensures that if your balance runs low, the transaction will simply be declined instead of incurring a fee.

Another tip is to opt for direct deposits or salary accounts. Many banks waive fees for customers who have their salaries deposited monthly. If possible, negotiate with your employer to use such accounts.

Finally, read the fine print before opening any account. Banks often hide terms in complex language, and customers only discover fees when they appear. By understanding all possible charges in advance, you can make informed choices.

In summary, the best way to avoid banking fees involves a combination of choosing the right bank, maintaining healthy financial habits, leveraging digital tools, and staying alert to account activity. When you are proactive, you can significantly reduce the amount of money lost to hidden and routine fees.

How do I get my bank fees waived?

Bank fees may seem unavoidable, but in many cases, they can be negotiated or waived if you take the right approach. Banks are businesses, and they value customers who maintain good relationships and consistent account activity.

If you know how to approach them strategically, you can often save money by having fees reversed.

The first step to getting bank fees waived is to contact customer service immediately after you notice an unexpected charge. Do not wait too long, as banks are more willing to reverse fees if the request is made promptly.

Explain your situation clearly and politely. For example, if you were charged an overdraft fee, you can mention that it was your first occurrence and request a one-time waiver. Many banks have policies that allow staff to remove fees as a goodwill gesture.

Another approach is to highlight your history as a loyal customer. If you have maintained your account for years, made regular deposits, or kept a good balance, use this as leverage. Banks prefer retaining long-term clients rather than losing them over dissatisfaction with fees.

If you are consistently being charged certain fees, such as monthly maintenance fees, you can ask about alternative account types.

Some banks have accounts that are fee-free if you meet specific requirements, such as maintaining a minimum balance or receiving direct deposits. Switching to one of these accounts could eliminate charges going forward.

Also, if you are charged for services you didn’t use or authorize, you can demand an investigation. For example, if you notice a fee for a service you never signed up for, you have the right to request a full refund.

In some cases, banks may run promotional offers or special programs that allow for waived fees. Keeping yourself informed about these opportunities can also help you negotiate successfully.

Finally, be persistent but polite. If the first customer service representative cannot help, ask to speak with a supervisor. Higher-level staff often have more authority to approve fee reversals.

In conclusion, getting bank fees waived is about being proactive, persuasive, and polite. By acting quickly, explaining your situation, and demonstrating your value as a customer, you can often save yourself from losing money unnecessarily.

Remember: banks are more likely to waive fees for customers who ask than for those who stay silent.

What is the best bank with no hidden fees?

The idea of finding the best bank with no hidden fees is a common desire among customers who are tired of unexplained deductions. However, it is important to understand that while banks can reduce charges, no financial institution can completely eliminate every fee, especially those mandated by regulatory authorities.

For example, government-imposed charges like stamp duties in Nigeria are compulsory and apply across all banks. That said, some banks are recognized for being far more transparent and customer-friendly when it comes to charges.

In many countries, digital banks (neobanks) stand out as the best choices for customers who want minimal or no hidden fees.

Unlike traditional banks that have high operating costs due to physical branches and staff, digital banks operate entirely online. This allows them to cut costs and offer more affordable services to their customers.

In Nigeria, Kuda Bank is often referred to as the “bank of the free.” It has built a strong reputation for its transparency and minimal charges. Customers enjoy free monthly transfers up to a limit, no card maintenance fees, and instant notifications for every transaction.

These features ensure that users are always aware of what is happening in their accounts, leaving little room for surprises.

Similarly, Opay and PalmPay have become popular alternatives. They operate more like financial technology platforms but still serve as banks for millions of users.

They provide free or very low-cost transfers, cashback offers, and no hidden maintenance charges. This makes them especially attractive to young people and those who conduct frequent online transactions.

Outside Nigeria, global neobanks such as Chime (USA), Monzo (UK), and N26 (Europe) are widely regarded as the best in terms of transparent banking with little to no hidden fees. These institutions often pride themselves on providing clear fee structures, instant alerts, and customer-friendly policies.

When considering the “best” bank, it is not only about the absence of hidden fees but also about the clarity of communication.

The ideal bank openly explains all charges before they occur, allows customers to track their money in real time, and provides options to avoid certain fees through account choices or spending habits.

In conclusion, while there may not be a single bank globally that offers zero charges at all times, digital-first banks like Kuda, Opay, and PalmPay in Nigeria and Chime or Monzo internationally come closest.

They combine transparency, customer-friendly policies, and smart technology to ensure that customers are not caught off guard by hidden deductions.

Which banks are banned from using USSD?

USSD (Unstructured Supplementary Service Data) codes are short codes, such as *737# or *326#, that allow customers to perform banking transactions on their phones without internet access.

In Nigeria, USSD banking has become a vital tool, especially for rural communities where smartphones and internet connections are limited. However, disputes between banks and telecom operators have led to restrictions on USSD services in some cases.

As of recent years, no bank has been permanently banned from using USSD in Nigeria, but there have been instances where banks faced temporary suspensions or restrictions due to disagreements over service fees.

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have had to step in on multiple occasions to mediate between telecom companies and banks.

The main issue has been the cost of USSD transactions. Telecom operators argue that banks should pay them a fee for using their infrastructure, while banks believe customers should not bear excessive costs. This conflict led to situations where some banks’ USSD codes became inactive for certain periods.

For example, in the past, banks like Guaranty Trust Bank (GTBank), Access Bank, and Zenith Bank temporarily experienced disruptions in their USSD services.

It is also important to note that USSD regulations differ across countries. In Nigeria, the CBN regulates banks, while the NCC regulates telecom companies. Neither has announced a blanket ban on specific banks, but rather they enforce compliance to ensure fair charges for customers.

Globally, in some regions, financial institutions that fail to meet security standards or comply with regulations may be restricted from using USSD. However, in Nigeria, the situation has generally been about temporary service disruptions rather than outright bans.

For customers, the most important step is to stay updated through their bank’s official communication channels. Banks usually inform customers via SMS, email, or their mobile apps if there is a disruption in USSD services.

Additionally, alternatives such as mobile apps, internet banking, and fintech wallets (Opay, PalmPay, Moniepoint) can serve as backups when USSD codes are unavailable.

In conclusion, while no Nigerian bank is permanently banned from using USSD, disputes between banks and telecom operators have caused temporary suspensions in the past. These interruptions are usually resolved after intervention by the CBN and NCC, ensuring customers regain access to essential services.

Why do banks have hidden fees?

Banks often advertise their services as simple and transparent, yet many customers still encounter charges they did not anticipate. These are referred to as hidden fees, and they are a significant source of frustration for account holders. But why do banks impose them in the first place?

One major reason is revenue generation. Banks are businesses, and like any other business, they need income to cover operational costs and generate profit. While they make money from interest on loans and investments, fees provide an additional revenue stream.

Charges for overdrafts, ATM withdrawals outside the bank’s network, and account maintenance may seem small individually, but when multiplied across millions of customers, they become a substantial source of income.

Another reason banks have hidden fees is customer behavior management. For instance, overdraft fees are meant to discourage customers from spending beyond their available balance.

Similarly, minimum balance requirements exist to ensure that customers keep a certain amount of money in their accounts, which the bank can then use for lending and investment. By imposing penalties, banks nudge customers into behaving in ways that support their financial systems.

Hidden fees can also be linked to regulatory costs. In some cases, what customers perceive as hidden fees are actually charges mandated by government policies. For example, in Nigeria, the stamp duty fee is deducted on certain transactions.

While the bank collects this fee, it is ultimately transferred to the government. Because these charges are not always well communicated, customers assume they are hidden deductions by the bank.

Additionally, banks rely on complexity in account agreements. Many customers do not read the fine print when opening accounts.

Banks take advantage of this by embedding various charges into terms and conditions, knowing that customers are unlikely to go through all the details. As a result, when the deductions occur, they feel unexpected.

Another factor is technological infrastructure and service costs. Banks spend money maintaining ATMs, mobile platforms, and security systems. Instead of increasing visible charges, they spread these costs across hidden fees to avoid scaring away customers with high upfront charges.

In conclusion, banks have hidden fees primarily because they serve as a reliable source of revenue, a way to influence customer behavior, and a mechanism to cover costs.

However, lack of clear communication makes them feel deceptive to customers. The best defense is for customers to stay informed, read account agreements carefully, and monitor their transactions regularly.

How to avoid bank account fees?

Bank account fees are a common part of modern banking, but with the right approach, you can significantly reduce or even eliminate them.

These fees often come in the form of monthly maintenance charges, overdraft penalties, ATM withdrawal costs, and transfer fees. To avoid them, you need to combine smart account choices with disciplined financial practices.

The first step is choosing the right bank and account type. Many banks, especially digital-only banks, offer accounts with no maintenance fees and minimal transaction charges.

For example, in Nigeria, banks like Kuda and Opay have positioned themselves as “no hidden charges” platforms. Traditional banks also have special accounts, such as student or salary accounts, which are designed to be fee-free if certain conditions are met.

Maintaining a minimum balance is another effective strategy. Some banks only charge maintenance fees when your account balance falls below a set amount. By keeping your balance above this threshold, you avoid deductions.

You should also be cautious with ATM usage. Using an ATM outside your bank’s network often comes with charges. A simple way to avoid this is to withdraw only from your bank’s ATMs or reduce your reliance on cash by embracing digital payments.

Monitoring your account regularly is also essential. With mobile banking apps and SMS alerts, you can keep track of your balance and transactions.

This prevents overdrafts, which are among the most common sources of fees. If possible, disable overdraft services so that transactions are declined instead of incurring penalties.

Another method is setting up direct deposits. Many banks waive monthly maintenance fees for customers who have their salaries or recurring income paid directly into their accounts. If you are employed, consider arranging this with your employer.

Additionally, you can bundle your services. Some banks reduce or eliminate fees if you use multiple products, such as combining savings, checking, and loan accounts. This creates a stronger relationship with the bank and may give you leverage to negotiate lower costs.

Finally, do not hesitate to ask for fee waivers. Banks sometimes reverse charges if you call customer service promptly and explain your situation. This is especially true for first-time occurrences.

In summary, avoiding bank account fees requires awareness and proactive management. By selecting the right bank, maintaining healthy account habits, monitoring your transactions, and negotiating when necessary, you can successfully minimize the money lost to banking fees.

What are the 7 common banking fees?

Banking fees come in different forms, and while they may seem small individually, they can add up to a significant amount over time. Understanding the most common banking fees helps customers take proactive steps to reduce or avoid them. Here are seven of the most frequent fees encountered by bank account holders:

1. Monthly Maintenance Fees
   Many banks charge customers a fixed amount every month just for keeping their accounts open. This fee may apply unless the customer meets certain conditions, such as maintaining a minimum balance or setting up direct deposits. Digital banks often waive this fee to attract more users.

2. ATM Withdrawal Fees
   Withdrawing money from an ATM outside your bank’s network usually attracts a fee. Sometimes, both the bank that owns the ATM and your own bank deduct charges, making this one of the most frustrating banking fees.

3. Overdraft Fees
   An overdraft occurs when you spend more money than is available in your account. Instead of declining the transaction, the bank covers it temporarily but charges you a fee for the service. Overdraft fees can be quite expensive and add up quickly if not managed.

4. Transfer Fees
   In many countries, sending money to another account, especially across banks, comes with charges. While digital banks have lowered or eliminated this cost, traditional banks often still apply transfer fees, particularly for interbank transactions.

5. Card Replacement Fees
   If you lose your debit card or request a replacement, many banks charge a fee. Even when the card is due for renewal, some banks still impose a cost, which customers often see as unnecessary.

6. Inactivity Fees
   Some banks charge customers when their accounts remain dormant for an extended period. This is common with savings accounts that go unused for several months or years.

7. Foreign Transaction Fees
   When customers use their debit or credit cards abroad, they often incur fees for currency conversion or cross-border transactions. These fees are usually a percentage of the amount spent and can be costly for frequent travelers.

In conclusion, the seven most common banking fees are monthly maintenance fees, ATM withdrawal fees, overdraft charges, transfer fees, card replacement costs, inactivity charges, and foreign transaction fees.

By being aware of these, customers can plan better and adopt strategies—such as using digital banks, monitoring accounts, and staying within terms—to reduce unnecessary financial losses.

Which bank controls all the banks in Nigeria?

In Nigeria, no single commercial bank controls all the others. Instead, the Central Bank of Nigeria (CBN) is the institution that oversees, regulates, and supervises every bank in the country. The CBN acts as the apex financial authority, ensuring stability in the banking sector and maintaining trust in the financial system.

The CBN was established in 1958 and began operations in 1959. Its primary responsibility is to regulate the supply of money, control inflation, stabilize the currency, and supervise commercial, microfinance, and merchant banks.

This supervisory role ensures that no bank operates outside the boundaries of established financial laws.

One of the CBN’s major functions is licensing banks. No financial institution can operate legally in Nigeria without CBN approval. This prevents fraudulent or unstable banks from entering the market and protects customers’ funds.

The CBN also plays a critical role in monitoring banking practices. For example, it sets guidelines for interest rates, reserve requirements, and the amount of capital banks must hold.

When banks violate regulations or threaten financial stability, the CBN has the authority to sanction them, impose fines, or even revoke their licenses.

Additionally, the CBN is responsible for consumer protection. If a bank exploits customers with unfair charges or engages in unethical practices, the CBN can step in to enforce corrective actions. This role is particularly important in a country where hidden fees and customer complaints are common.

Another significant function is monetary policy management. By controlling interest rates and money supply, the CBN indirectly influences the behavior of all commercial banks. For instance, when the CBN raises interest rates, banks are likely to adjust their lending and deposit rates accordingly.

The CBN also manages the Nigeria Deposit Insurance Corporation (NDIC) partnership, which guarantees customer deposits up to a certain limit. This ensures that even if a bank collapses, customers do not lose all their savings.

In short, while each commercial bank in Nigeria operates independently to serve customers, it is the Central Bank of Nigeria that ultimately controls and regulates them all. It ensures stability, transparency, and compliance with national financial policies, making it the backbone of the Nigerian banking system.

Which bank uses *326 in Nigeria?

In Nigeria, USSD banking has become an important tool for financial inclusion. It allows customers to carry out transactions using shortcodes on their mobile phones without needing internet access.

This service is especially useful in rural areas where smartphones or reliable internet connections are scarce. Among the many USSD codes used by banks in Nigeria, the code *326# belongs to Polaris Bank.

Polaris Bank introduced the *326# USSD code as a way to bring banking closer to its customers. Through this code, users can perform a wide range of services such as checking their account balance, transferring money, buying airtime, paying bills, and even opening new accounts.

The beauty of USSD banking is its convenience and accessibility. Any customer with a simple mobile phone can use it, meaning you don’t need internet or a smartphone.

One of the advantages of the *326# code is speed and simplicity. Transactions usually take a few seconds to complete, and customers receive confirmation messages instantly. This is particularly useful in emergencies, such as when someone needs to buy airtime quickly or send money to a family member.

Polaris Bank also designed the USSD platform with security measures in place. Customers are required to set up a PIN or use their ATM card details for registration. This ensures that even if someone gains access to their phone, unauthorized transactions cannot easily take place.

Another noteworthy aspect is that the *326# USSD service works across all major telecom networks in Nigeria. This makes it inclusive and ensures that customers, regardless of their mobile provider, can benefit from it.

In summary, the *326# code is specifically owned and operated by Polaris Bank in Nigeria. It reflects the bank’s effort to promote cashless transactions, financial inclusion, and convenient banking services. For customers seeking quick, offline banking solutions, Polaris Bank’s *326# platform remains a reliable option.

What banks no longer exist in Nigeria?

Over the years, the Nigerian banking sector has undergone several transformations. Some banks that once operated in the country no longer exist today. This is due to reasons such as mergers, acquisitions, rebranding, insolvency, and revocation of licenses by the Central Bank of Nigeria (CBN).

One notable example is Diamond Bank, which merged with Access Bank in 2019. This merger was one of the biggest in Nigeria’s banking history, creating a larger and more competitive Access Bank. As a result, Diamond Bank as an independent entity ceased to exist.

Another case is Oceanic Bank International, which was acquired by Ecobank in 2011. Oceanic Bank had faced financial troubles during the banking crisis of 2009, leading to its eventual takeover.

Similarly, Intercontinental Bank no longer exists after being acquired by Access Bank in 2011. The acquisition helped stabilize the bank’s operations and integrate its customers into the larger Access Bank system.

Skye Bank is another example. In 2018, the CBN revoked its license due to insolvency and poor financial health. However, the bank’s operations did not completely vanish; they were taken over by Polaris Bank, which was created as a bridge bank to continue serving customers.

Other banks that no longer exist include:

• Afribank, which became part of Mainstreet Bank before eventually being acquired by Skye Bank.

• Spring Bank, which merged with other institutions during consolidation.

• Bank PHB (Platinum Habib Bank), which later became Keystone Bank after restructuring.

The disappearance of these banks highlights the dynamic nature of the Nigerian banking industry. Weak financial structures, poor management, and failure to meet regulatory requirements have often led to mergers or acquisitions as solutions.

The CBN plays a key role in ensuring that customers’ funds are protected during these transitions, often by facilitating smooth takeovers by stronger banks.

In conclusion, banks such as Diamond Bank, Oceanic Bank, Intercontinental Bank, Skye Bank, Afribank, Spring Bank, and Bank PHB no longer exist in Nigeria today.

Their absence is a result of mergers, acquisitions, or regulatory interventions aimed at stabilizing the sector. While these names have disappeared, their customers and operations have usually been absorbed into stronger institutions, ensuring continuity in Nigeria’s financial system.

How do banks make money if they don’t charge fees?

At first glance, it may seem that banks rely heavily on fees to generate revenue. Charges such as ATM withdrawals, overdraft penalties, or account maintenance fees appear to be an important income stream. But in reality, even if a bank reduces or eliminates fees, it can still remain profitable through other means.

The primary way banks make money without fees is through the interest rate spread. Banks accept deposits from customers and pay them relatively low interest rates.

They then lend this money out as loans (for mortgages, personal loans, and business financing) at higher interest rates. The difference between the interest paid on deposits and the interest earned from loans is known as the “spread,” and it represents one of the largest sources of income for banks.

Banks also generate significant revenue from investments. They invest in government securities, bonds, and other financial instruments. These investments provide steady returns, ensuring the bank remains profitable even if customer fees are minimized.

Another source of revenue is foreign exchange transactions. Banks facilitate currency conversions for customers traveling abroad, businesses trading internationally, or individuals sending money across borders.

They often charge a small margin on these conversions, which adds up substantially across millions of transactions.

Additionally, banks earn money from merchant services. When customers use debit or credit cards, businesses pay a small processing fee. Banks that issue these cards collect a portion of this fee, which can be a huge source of income given the volume of card transactions today.

Some banks also rely on partnerships and cross-selling financial products. They may offer insurance, investment funds, or wealth management services. These partnerships generate commissions and additional income streams without depending on account fees.

Even in banks that advertise “no hidden fees,” certain regulatory charges or third-party deductions may still apply. However, these are often government-imposed rather than direct income for the bank.

In summary, banks that don’t charge fees make money primarily through lending, investments, foreign exchange services, merchant transactions, and financial partnerships.

This diversified approach ensures profitability while giving customers the impression of fee-free or low-cost banking. Essentially, such banks shift the focus from charging customers directly to earning from financial operations and large-scale transactions.

How do I avoid transfer fees between banks?

Bank transfers are an essential part of modern financial life, but they often come with fees, especially for interbank transactions. Over time, these charges can add up significantly. Fortunately, there are several strategies you can use to avoid or minimize transfer fees between banks.

One effective method is to use digital banks or fintech platforms. In Nigeria, banks like Kuda, Opay, and PalmPay provide free transfers up to a certain limit every month. By leveraging these accounts for your regular transactions, you can bypass the traditional transfer charges imposed by older banks.

Another option is to take advantage of same-bank transfers. While interbank transfers usually attract fees, transactions within the same bank are often free.

If you and the recipient both have accounts in the same institution, you can avoid charges altogether. In practice, some people open multiple accounts in different banks to make transfers easier and cheaper.

You can also bundle your transfers. Instead of sending small amounts multiple times, combine them into one larger transaction. Since most banks charge per transfer, this reduces the total number of charges.

Another helpful strategy is to use alternative payment methods such as mobile wallets, USSD services, or peer-to-peer apps. Many of these services offer low-cost or free transfers compared to traditional banks. For instance, some fintech platforms run promotions where interbank transfers are completely free.

Some banks waive transfer fees if you maintain a minimum balance or sign up for premium accounts. While these accounts might come with conditions, they can be cost-effective if you regularly make large transactions.

If you frequently send money internationally, consider using online transfer services like Wise, Payoneer, or Remittance apps. They often provide cheaper rates compared to traditional bank wires.

Lastly, watch for promotional offers. Banks and fintech companies often introduce limited-time deals with free transfers to attract customers. Staying updated on such offers can save you a lot over time.

In conclusion, avoiding transfer fees between banks requires smart use of digital banks, same-bank transfers, alternative payment platforms, and promotional opportunities. By planning your transfers strategically and choosing the right financial tools, you can significantly reduce or completely eliminate transfer charges.

Do all banks charge a monthly fee?

Not all banks charge a monthly fee, but many traditional banks do, especially for certain types of accounts. A monthly maintenance fee is a common charge meant to cover the cost of account services, including customer support, account security, and transaction processing.

However, whether or not a bank charges this fee depends on the type of account, the banking institution, and the country’s regulatory framework.

Traditional banks often rely on monthly fees as part of their revenue model. These charges may range from a small flat rate to higher amounts for accounts with additional services. For instance, current accounts with check-writing privileges, debit cards, and access to multiple ATMs often come with maintenance charges.

That said, not every customer has to pay these fees. Many banks provide conditions under which the fees are waived. For example, if you maintain a minimum daily or monthly balance, set up direct deposits, or use the account actively, the monthly fee may be eliminated.

This encourages customers to keep more money in the bank, which benefits the institution by increasing its lending capacity.

On the other hand, digital banks and fintech platforms generally do not charge monthly fees. Since they operate online without the cost of maintaining numerous branches or staff, they can afford to provide free accounts.

Banks like Kuda, Opay, PalmPay (Nigeria), and Chime, Monzo, Revolut (internationally) are good examples of institutions that advertise “zero maintenance fees.”

In addition, some banks offer special accounts for students, retirees, or low-income individuals that are free of monthly charges. These accounts often have restrictions, such as limited free transfers or caps on withdrawals, but they help customers avoid paying extra just to hold an account.

It’s also important to distinguish between mandatory regulatory fees and bank-imposed fees. Even if a bank eliminates monthly maintenance costs, it may still be required by law to deduct charges such as government stamp duty or tax-related deductions. These are not the bank’s income but rather statutory payments.

In conclusion, not all banks charge a monthly fee. Traditional banks often do, but digital banks and special accounts provide fee-free alternatives.

Customers who want to avoid monthly fees should research their options, compare account types, and consider fintech solutions that are designed to be more transparent and cost-effective.

Which bank is the strongest bank in Nigeria?

The strength of a bank can be measured in different ways—such as total assets, profitability, customer base, international presence, or stability. In Nigeria, several banks compete for the top position, but Access Bank, Zenith Bank, and First Bank are consistently recognized as the strongest players in the industry.

Access Bank is currently one of the largest and strongest banks in Nigeria by total assets and customer reach. Following its merger with Diamond Bank in 2019, Access Bank gained millions of additional customers and expanded its branch network significantly.

It now operates in multiple African countries as well as in the United Kingdom, demonstrating its international presence. Its aggressive expansion strategy and strong financial performance make it a leader in the Nigerian banking sector.

Zenith Bank is another contender for the strongest bank in Nigeria. Known for its financial discipline, technology-driven services, and corporate banking expertise, Zenith has consistently reported some of the highest profits among Nigerian banks.

It has also maintained strong capital adequacy, meaning it is well-prepared to handle risks and economic shocks.

First Bank of Nigeria holds historical significance as one of the oldest and most trusted banks in the country. Its strength lies in its long-standing reputation, wide branch network, and customer trust built over more than a century.

While it may not always lead in profitability, it remains one of the most stable and influential institutions in the Nigerian banking sector.

Other banks like United Bank for Africa (UBA) also show strength, particularly in their pan-African presence. UBA operates in more than 20 African countries and has built strong cross-border banking systems.

In terms of official rankings, Access Bank and Zenith Bank often lead when judged by financial reports, total assets, and profitability. For example, in recent years, Access Bank has held the largest asset base, while Zenith Bank has consistently reported the highest after-tax profits.

In conclusion, the strongest bank in Nigeria can be considered either Access Bank for its size and expansion, or Zenith Bank for its profitability and stability. Both banks dominate the industry and continue to strengthen their positions domestically and internationally.

Is OPay NDIC insured?

The Nigerian Deposit Insurance Corporation (NDIC) is the government body responsible for protecting depositors’ funds in Nigeria’s financial institutions. It ensures that if a licensed bank collapses, customers will still be able to recover part of their money, up to a specified limit.

With the rise of fintech companies like OPay, many Nigerians are asking whether their deposits in these platforms are also covered by NDIC insurance.

OPay is not a traditional deposit money bank (DMB). Instead, it is a licensed mobile money operator regulated by the Central Bank of Nigeria (CBN).

As such, OPay itself does not directly hold customer funds the way conventional banks like Access or Zenith do. Instead, customer deposits are stored in partner banks that OPay works with under CBN’s guidelines.

Because these partner banks are NDIC-insured, it means that customers’ funds in OPay wallets are indirectly covered.

In simple terms, while you may not see “NDIC insured” written directly on the OPay platform, your money is protected because OPay operates under a regulatory framework that requires it to keep customer funds safe in insured banks.

For example, if you have ₦200,000 in your OPay wallet, that money is not sitting in OPay’s personal account but is safeguarded through accounts held in NDIC-insured banks. If OPay were to face operational issues, CBN and NDIC frameworks ensure that customer funds remain safe and recoverable.

It is also worth noting that OPay has obtained the CBN Mobile Money Operator (MMO) license, which comes with strict requirements for financial security and customer protection. This license means OPay cannot freely use customer deposits for risky investments the way some unregulated platforms might.

However, customers should understand that NDIC coverage has limits. For conventional banks, the NDIC insures up to ₦500,000 per depositor per bank. For mobile money operators, customer protection is structured differently but still under the supervision of CBN and NDIC frameworks.

In conclusion, while OPay itself is not directly listed as an NDIC-insured bank, the funds you keep in your OPay wallet are indirectly NDIC insured through partner banks.

This means your money enjoys the same level of protection as funds deposited in regular Nigerian banks, making OPay a relatively safe platform for financial transactions.

Which bank shut down in Nigeria?

Over the years, several banks have shut down in Nigeria due to insolvency, mismanagement, or regulatory action by the Central Bank of Nigeria (CBN). When a bank shuts down, it means its license has been revoked, and it can no longer operate as a financial institution.

One of the most notable cases in recent history was Skye Bank, which shut down in 2018. The CBN revoked Skye Bank’s license after it failed to meet regulatory capital requirements and showed signs of financial instability.

To protect depositors and ensure continuity of services, the CBN immediately transferred all assets and liabilities of Skye Bank to a newly created bridge bank called Polaris Bank. This allowed customers to continue banking seamlessly, even though the Skye Bank brand no longer exists.

Before Skye Bank, other banks had also shut down or been restructured. For example:

• Oceanic Bank International was acquired by Ecobank in 2011 after financial challenges.

• Intercontinental Bank was taken over by Access Bank in 2011.

• Afribank and Spring Bank were restructured, and their operations eventually absorbed by stronger banks.

• Bank PHB later transformed into Keystone Bank under new ownership.

These closures and mergers often occur during banking reforms aimed at strengthening the sector. The CBN usually steps in when a bank is unable to maintain healthy operations, in order to protect depositors and prevent widespread financial instability.

In addition, it is important to note that when banks shut down in Nigeria, customer funds are protected by the Nigeria Deposit Insurance Corporation (NDIC). This ensures that depositors can still recover part or all of their money, depending on the circumstances and insurance limits.

Currently, the most recent and widely known case is Skye Bank’s shutdown in 2018, which gave birth to Polaris Bank. Since then, Nigeria’s banking sector has been relatively stable, although the CBN continues to monitor banks to prevent future collapses.

In conclusion, several banks have shut down in Nigeria over the years, but the most recent example is Skye Bank in 2018.

Thanks to regulatory intervention, customer funds were safeguarded, and services continued under Polaris Bank. These actions highlight the CBN’s role in maintaining stability in the Nigerian banking system.

Which bank never fails?

The idea of a bank that “never fails” is attractive, but in reality, no financial institution is completely immune to failure. Banks operate within the global and national economy, and they are affected by risks such as poor management, bad loans, fraud, economic downturns, or government policy changes.

That said, some banks are considered highly reliable and are much less likely to fail because of their strong financial base, regulatory compliance, and trust built over decades.

Globally, banks in countries with very strong regulatory frameworks, such as Switzerland, the United States, Germany, and Canada, are often considered highly stable.

For example, banks like JPMorgan Chase (USA), UBS (Switzerland), and Deutsche Bank (Germany) are viewed as unlikely to collapse due to their size, diversified operations, and strong government oversight.

These institutions are often classified as “too big to fail,” meaning their governments would likely step in to support them if they faced major financial trouble, because their collapse could destabilize the entire financial system.

In Nigeria, certain banks have built reputations for strength and reliability. For instance:

• First Bank of Nigeria (FBN) is over 125 years old and has survived multiple economic cycles, currency devaluations, and regulatory reforms. Its long history suggests strong resilience.

• Zenith Bank is known for financial discipline, high profitability, and strong capital adequacy, making it one of the safest banks in the country.

• Access Bank has rapidly grown through mergers and acquisitions and is now one of the largest banks in Africa by assets.

However, history shows that no bank is absolutely immune. Even large institutions like Lehman Brothers (USA) collapsed during the 2008 financial crisis, proving that “too big to fail” does not mean “never fails.”

The truth is that it is regulation and deposit protection systems that prevent customers from losing money, not necessarily the bank’s eternal stability.

In Nigeria, the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) ensure that even if a bank fails, customers’ deposits are protected up to a certain limit.

In conclusion, while no bank can truthfully claim it will never fail, some banks are far more reliable due to strong governance, profitability, and government backing.

Globally, large multinational banks have the least likelihood of collapse, while in Nigeria, institutions like First Bank, Zenith, and Access Bank are considered the most dependable.

Which bank is more reliable in Nigeria?

Reliability in banking refers to trustworthiness, stability, and the ability of a bank to protect customer funds while delivering consistent services. In Nigeria, banking reliability is determined by several factors: financial strength, regulatory compliance, digital innovation, customer service, and historical resilience.

Zenith Bank is widely considered one of the most reliable banks in Nigeria. Its reputation stems from financial discipline, high profitability, and minimal record of scandals compared to some competitors.

Zenith has consistently posted strong financial results, making it one of the most capitalized banks in the country. For businesses and high-net-worth individuals, Zenith is often the preferred choice for reliability.

First Bank of Nigeria is another highly reliable institution. As the oldest bank in the country, it has weathered decades of economic crises, political instability, and financial reforms.

First Bank’s widespread branch network and deep customer trust make it a strong contender for reliability. Many Nigerians, especially older generations, prefer First Bank because of its proven track record.

Access Bank also ranks high in terms of reliability. Its merger with Diamond Bank expanded its customer base and asset size, making it the largest bank in Nigeria by customer numbers. Access Bank has invested heavily in digital banking infrastructure, improving its ability to serve millions of customers efficiently.

United Bank for Africa (UBA) is another reliable option, especially because of its strong pan-African presence. With operations in over 20 African countries, UBA provides stability through diversification and cross-border services. This international presence gives it an edge in reliability for businesses engaged in international trade.

However, reliability is not only about size or profitability. Customers often consider digital reliability—how often mobile apps, ATMs, and online services function without interruption.

In this regard, banks like GTBank (now GTCO) stand out, as they are known for user-friendly digital platforms and strong online banking services.

In Nigeria, the CBN and NDIC also play a crucial role in ensuring reliability across the entire banking sector. By enforcing strict regulations and providing deposit insurance, they make sure that even if a bank faces trouble, customers are protected.

In conclusion, while several banks in Nigeria can be described as reliable, Zenith Bank, First Bank, Access Bank, UBA, and GTBank stand out the most. Each excels in different areas, but collectively, they represent the most trusted and dependable institutions in the Nigerian financial system.

What is the safest bank in the world?

The concept of the “safest bank in the world” is tied to financial stability, strong capital reserves, consistent profitability, government backing, and an excellent reputation for customer trust.

While no bank is completely immune to risk, some institutions are regarded as exceptionally safe because of their size, history, and strong regulatory environments.

Globally, banks in countries with robust economies and strict financial regulations are often ranked the safest. For instance, Swiss banks are internationally recognized for their security, privacy, and financial stability.

Among them, UBS Group AG and Credit Suisse (before its 2023 merger with UBS) have long been considered very safe due to Switzerland’s strong banking laws and global reputation.

In the United States, JPMorgan Chase is often labeled as one of the safest banks. It is the largest bank in the country by assets, and its diversified operations—ranging from retail banking to investment banking—provide it with resilience.

The U.S. government and Federal Reserve also maintain systems to ensure such large institutions remain stable, since their collapse could destabilize the entire global financial system.

In Germany, KfW (Kreditanstalt für Wiederaufbau), a government-owned development bank, has often been ranked as one of the safest banks worldwide. Since it is fully backed by the German government, the risk of failure is almost nonexistent.

In Asia, DBS Bank of Singapore is widely regarded as one of the safest banks, thanks to Singapore’s strong economy, prudent financial regulations, and DBS’s history of profitability and stability.

Safety in banking is also measured by credit ratings from agencies like Moody’s, Standard & Poor’s, and Fitch. Banks with high ratings (AAA or AA) are considered less risky, meaning depositors’ funds are highly secure.

Many of the world’s safest banks belong to countries like Switzerland, Germany, Singapore, and Canada, where governments actively protect the financial system.

In summary, while several banks can claim the title, KfW (Germany) is often considered the single safest bank in the world because it is government-owned and guaranteed.

However, banks like JPMorgan Chase (USA), UBS (Switzerland), and DBS Bank (Singapore) are also ranked among the safest due to their size, global presence, and strict regulation. For customers, the safest banks are those in stable economies with strong government oversight and deposit insurance systems.

What are three strategies you can use to avoid bank fees?

Bank fees can quietly drain your finances if not managed carefully. From account maintenance charges to transfer fees and ATM withdrawals, these costs add up over time. Fortunately, there are effective strategies to minimize or completely avoid them. Here are three of the most practical approaches:

1. Choose a fee-free or digital bank account

One of the easiest ways to avoid bank fees is to open an account with a bank that does not charge monthly maintenance fees. Many digital banks and fintech platforms such as Kuda, Opay, PalmPay (in Nigeria), and Chime, Revolut, or Monzo (internationally) offer free accounts.

They usually provide free transfers up to a certain number each month, with no hidden charges. These banks operate primarily online, reducing overhead costs and passing the savings on to customers. By using such accounts, you can avoid most of the fees that traditional banks impose.

2. Maintain minimum balance requirements or meet fee-waiver conditions

Traditional banks often waive monthly fees if customers meet certain conditions. For example, maintaining a minimum daily or monthly balance, receiving direct deposits, or making a set number of transactions can qualify you for fee-free banking.

While this might require discipline, it is a practical way to avoid charges if you prefer using traditional banks. By carefully tracking account requirements, you can make sure you never fall below the minimum balance, thus avoiding penalties.

3. Use in-network ATMs and bundle transfers

ATM withdrawal fees and interbank transfer charges are some of the most common costs customers face. To avoid them, use ATMs within your bank’s network whenever possible.

Many banks charge significantly less or nothing at all when you use their own machines. Similarly, instead of making multiple small transfers that each attract a fee, bundle your payments into one larger transaction. This reduces the number of charges you pay while still getting money to where it needs to go.

Beyond these three main strategies, customers can also monitor promotional offers, use peer-to-peer payment apps, and regularly review account statements to spot unnecessary charges.

In conclusion, avoiding bank fees requires being intentional about where and how you bank. By choosing digital banks, meeting waiver requirements, and being smart about ATM and transfer usage, you can significantly cut down or even eliminate most banking fees.

How to transfer money without fees?

Transferring money is one of the most common financial activities today, but it often comes with charges that accumulate over time.

Whether it is interbank transfers, international remittances, or mobile wallet payments, fees can cut into your money. Fortunately, there are several strategies you can use to transfer money without paying fees.

1. Use digital banks and fintech platforms

Many digital banks and mobile money operators now provide free or low-cost transfers. For example, in Nigeria, fintech platforms such as Kuda, Opay, PalmPay, and FairMoney offer free transfers up to a certain number per month.

Similarly, international options like Chime, Revolut, Venmo, and Cash App allow fee-free peer-to-peer transfers within their platforms. By choosing the right digital bank, you can avoid most charges associated with interbank transfers.

2. Transfer within the same bank

Most banks allow you to transfer money to other accounts within the same institution at no cost. If you and the recipient share the same bank, this is the easiest way to avoid fees. Some people even open multiple accounts across different banks to make it easier to send and receive funds without charges.

3. Leverage promotional offers and referral bonuses

Banks and fintechs often run promotional campaigns to attract new users. During these periods, transfers may be free or attract heavy discounts. Taking advantage of such promotions can help you save money when moving funds.

4. Use peer-to-peer (P2P) platforms

Peer-to-peer transfer services allow you to send money directly without involving traditional banks. In Nigeria, platforms like Paga or fintech wallets allow you to transfer funds with minimal or no fees.

Internationally, platforms like PayPal Friends and Family or Wise (for some currencies) provide cheaper or free transfers compared to traditional banks.

5. Bundle transfers into one transaction

If you must use a platform that charges per transaction, avoid sending multiple small amounts. Instead, combine payments into one larger transfer. This way, you only pay once—or better still, meet conditions that allow the transaction to be free.

6. Look for partnerships with telecom services

In some countries, banks and mobile networks partner to offer free USSD transfers for certain amounts or customers. Monitoring such offers can help reduce or eliminate charges.

In conclusion, transferring money without fees requires smart choices. By using digital banks, opting for same-bank transfers, leveraging promotions, and using peer-to-peer platforms, you can significantly cut down or completely avoid charges.

With the rise of fintech, customers now have more control over how much they spend on banking services.

How do banks make a profit?

Banks are financial institutions, and like any business, their main objective is to make a profit. But instead of selling physical goods, banks make money by managing money—accepting deposits, providing loans, investing, and offering financial services.

Their profit model is broad and diversified, ensuring stability even when one revenue source slows down.

1. Interest rate spread (core banking income)

The biggest way banks make profit is through the difference between interest paid on deposits and interest earned from loans.

For example, a bank may pay depositors 2% interest on savings accounts but charge borrowers 15% on loans. The gap—known as the interest spread—is one of the most consistent profit sources for banks worldwide.

2. Fees and commissions

Banks also make money from various charges such as account maintenance fees, transfer charges, overdraft penalties, and ATM fees.

Even though many modern banks are reducing these costs, traditional banks still rely heavily on them. Additionally, banks earn commissions when they sell insurance, mutual funds, or investment products.

3. Foreign exchange services

Banks profit by facilitating currency exchanges for travelers, businesses, and international trade. They usually add a small markup to the exchange rate, which, when multiplied across thousands of transactions, generates significant revenue.

4. Investments

Banks invest customer deposits into government securities, bonds, and safe financial instruments. The returns from these investments add to their income while maintaining liquidity and safety.

5. Merchant and card services

Every time you swipe your debit or credit card, merchants pay a small processing fee. Banks that issue these cards share in this revenue, making payment processing a lucrative source of income.

6. Wealth management and advisory services

For high-net-worth individuals and businesses, banks provide wealth management, investment advisory, and corporate finance services. These specialized services generate large profits from consultancy and management fees.

7. Fines and penalties

Although not the most popular method, banks also profit from late payment penalties on loans and overdraft charges. These fines, while burdensome to customers, add to the bank’s earnings.

In conclusion, banks make a profit through a combination of interest spreads, fees, investments, forex services, card transactions, and financial advisory. Their business model is structured to ensure that money keeps flowing, even if one income stream slows. Ultimately, banks profit not by holding money, but by circulating it in ways that generate returns.

Who owns Zenith Bank?

Zenith Bank is one of Nigeria’s largest and most profitable financial institutions. Founded in 1990 by Jim Ovia, it has grown to become a leading player in the Nigerian and West African banking sector.

While Jim Ovia is widely recognized as the founder, the question of “ownership” is more complex because Zenith Bank is not a privately owned entity—it is a publicly listed company on the Nigerian Exchange (NGX) and the London Stock Exchange (LSE).

This means that ownership is spread across thousands of shareholders who own different percentages of the bank through shares. Jim Ovia, the founder, remains one of the largest individual shareholders and plays a significant role as the Chairman of Zenith Bank Plc.

His leadership and vision were instrumental in shaping the bank into a powerhouse, but he does not “own” the bank outright.

The largest stakeholders in Zenith Bank are a mix of institutional investors, retail investors, and foreign investors. Institutional investors include pension funds, asset managers, and other financial firms that buy large volumes of shares. Retail investors are everyday individuals who purchase shares on the stock exchange.

Being a publicly listed company gives Zenith Bank transparency and stability. The bank publishes annual financial reports, discloses shareholder structures, and operates under the strict regulatory supervision of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

It’s also important to note that while Jim Ovia remains influential, Zenith Bank is managed by a Board of Directors and Executive Management Team. These professionals ensure the bank operates according to corporate governance standards and international best practices.

So, when asking “Who owns Zenith Bank?”, the answer is:

• Jim Ovia founded the bank and remains a key shareholder and Chairman.

• Thousands of shareholders own portions of the bank through shares listed on the NGX and LSE.

• Institutional investors hold significant stakes due to their large investments.

In summary, Zenith Bank is not owned by a single person but is a public company with distributed ownership. Jim Ovia remains the most notable figure associated with the bank due to his founding role and large shareholding, but ultimate control rests in the hands of all shareholders and its governing board.

Which bank controls all the banks in Nigeria?

In Nigeria, no single commercial bank controls all the others. Instead, the Central Bank of Nigeria (CBN) acts as the primary regulatory authority that oversees, supervises, and regulates all banks and other financial institutions in the country.

The CBN was established in 1958 and began operations in 1959. Its primary mandate is to ensure monetary and price stability, issue currency, maintain foreign reserves, and regulate the banking sector. Essentially, it functions as the “bank of banks” in Nigeria.

The CBN controls all banks through several mechanisms:

1. Licensing – No bank can operate in Nigeria without a license from the CBN. The Central Bank issues and revokes licenses based on compliance with financial laws and regulations.

2. Monetary Policy – The CBN sets interest rates, cash reserve ratios, and lending guidelines that all commercial banks must follow. These policies control inflation, currency stability, and credit availability.

3. Regulatory Oversight – The CBN supervises banks to ensure they maintain adequate capital, liquidity, and risk management practices. If a bank is mismanaged, the CBN can intervene, as it did with Skye Bank in 2018, which was converted into Polaris Bank.

4. Foreign Exchange Management – All banks that engage in foreign exchange transactions must follow the rules set by the CBN. This ensures consistency and stability in Nigeria’s currency market.

5. Consumer Protection – The CBN also ensures that banks treat customers fairly by issuing guidelines on charges, interest rates, and digital banking services.

In addition to the CBN, the Nigeria Deposit Insurance Corporation (NDIC) works alongside it to protect depositors’ funds. While the CBN regulates the banks, the NDIC provides insurance that ensures customers do not lose their deposits if a bank collapses.

Therefore, the CBN does not operate like a commercial bank that accepts deposits from everyday people. Instead, it acts as the umbrella institution that sets the rules for all banks, ensures financial stability, and manages the economy’s money supply.

In conclusion, the Central Bank of Nigeria (CBN) is the institution that controls all banks in Nigeria. It acts as the regulator, supervisor, and financial authority, ensuring that the entire banking system remains stable and trustworthy. Without the CBN’s oversight, Nigeria’s financial sector would be vulnerable to instability and crises.

Which bank uses *326 in Nigeria?

In Nigeria, USSD banking codes are widely used to provide financial services without needing internet access or a smartphone. They allow customers to carry out transactions such as transfers, airtime purchase, bill payments, and balance inquiries directly from their mobile phones. Among these codes, *326# is specifically associated with Sterling Bank.

Sterling Bank introduced *326# as part of its digital banking strategy to reach customers across urban and rural areas. With this code, customers can perform various banking transactions securely and quickly.

For instance, by dialing *326#, a Sterling Bank customer can check their account balance, transfer money to other banks, buy airtime or data, and even pay bills like electricity and TV subscriptions.

One of the major benefits of USSD banking is accessibility. Unlike mobile apps that require internet connections, USSD works on any type of mobile phone, including basic feature phones.

This makes it an important tool for financial inclusion in Nigeria, where millions of people may not have smartphones or stable internet connections.

For security, Sterling Bank’s *326# service requires a Personal Identification Number (PIN) set up by the customer. This ensures that even if a phone is stolen, unauthorized persons cannot easily access the account.

It is also important to note that each bank in Nigeria has its unique USSD code. For example, GTBank uses *737#, Access Bank uses *901#, and First Bank uses *894#. Therefore, the use of *326# clearly identifies a transaction as belonging to Sterling Bank customers.

In addition, *326# is not limited to existing Sterling Bank account holders. New customers can also open accounts through the code without visiting a bank branch. This helps in driving financial inclusion, especially in remote areas.

In conclusion, *326# is the official USSD code of Sterling Bank in Nigeria. It provides convenient, fast, and secure banking services, bridging the gap for customers who may not always have internet access but still want to manage their finances effectively.

What banks no longer exist in Nigeria?

Over the years, Nigeria’s banking sector has undergone significant reforms, mergers, acquisitions, and closures. These changes were mostly driven by the Central Bank of Nigeria (CBN) to strengthen the industry and protect depositors.

As a result, several banks that once operated in Nigeria no longer exist today, either because they failed financially or were absorbed by stronger institutions.

Some notable examples include:

1. Skye Bank – Perhaps the most recent closure, Skye Bank’s license was revoked in 2018 after it failed to meet regulatory requirements. Its assets and liabilities were transferred to Polaris Bank, which still operates today.

2. Oceanic Bank International – Once a major player in Nigeria’s banking industry, Oceanic Bank faced financial troubles and was eventually acquired by Ecobank in 2011.

3. Intercontinental Bank – This bank also struggled with capital adequacy and was acquired by Access Bank in 2011, making Access Bank one of the biggest institutions in Nigeria.

4. Afribank – Afribank was taken over by the CBN in 2011 and its assets transferred to Mainstreet Bank, which was later acquired by Skye Bank (and now Polaris Bank).

5. Bank PHB (Platinum Habib Bank) – This bank collapsed in 2011 and was rebranded as Keystone Bank under new management.

6. Spring Bank – Another casualty of the 2011 banking reforms, Spring Bank’s license was revoked, and its operations absorbed by other institutions.

7. Savannah Bank – This bank’s license was revoked in 2002 due to insolvency, although there have been ongoing legal disputes about its revival.

These closures were primarily the result of poor management, inability to meet capital requirements, fraudulent practices, or failure to comply with CBN’s strict regulations.

To protect customers, the Nigeria Deposit Insurance Corporation (NDIC) stepped in to guarantee deposits up to insured limits, while stronger banks absorbed the failing ones.

The positive outcome of these reforms is that Nigeria now has fewer but stronger banks compared to the early 2000s, when there were over 80 banks. Today, the sector is dominated by well-capitalized institutions like Zenith, Access, First Bank, GTBank, and UBA.

In conclusion, several banks no longer exist in Nigeria, including Skye Bank, Oceanic Bank, Intercontinental Bank, Afribank, Bank PHB, Spring Bank, and Savannah Bank. Their closures reflect the continuous restructuring of Nigeria’s banking industry to build a more stable and resilient financial system.

Why do banks have hidden fees?

Banks often promote themselves as offering free or low-cost services, but in reality, many customers discover hidden fees tucked into their statements.

These fees can range from small charges on ATM withdrawals to unexpected deductions for account maintenance. The main reason banks have hidden fees is that they serve as a major source of revenue.

Banks operate as businesses, and like any business, they need to cover costs and make profits. While they earn significant income from lending money at interest, hidden fees provide additional streams of income.

These charges are often spread across millions of customers, meaning even small deductions can generate large profits for the bank.

Another reason is customer behavior. Many people do not carefully read the fine print when opening bank accounts. Banks take advantage of this by including charges that may not be obvious upfront.

For example, a bank may advertise free transfers but limit the number of free transactions per month. After that limit, customers start paying fees without realizing it.

Banks also impose hidden fees to manage customer habits. For instance, overdraft charges are meant to discourage customers from spending beyond what they have. Similarly, inactivity fees are charged to keep accounts active and prevent dormant accounts from staying on the books.

Operational costs are another factor. Running a bank involves expenses like staff salaries, branch maintenance, digital platforms, and regulatory compliance. Instead of openly raising fees, banks sometimes hide costs within smaller charges so customers are less likely to notice or complain.

Competition also plays a role. If banks openly listed high service charges, they might lose customers to competitors. Instead, they present themselves as affordable but embed costs in less obvious places.

In summary, banks have hidden fees because:

1. They generate significant revenue.

2. Many customers don’t pay attention to account terms.

3. Fees discourage certain behaviors like overdrawing.

4. They help cover operational costs.

5. They allow banks to appear competitive while still profiting.

The key for customers is to stay informed. By reading account terms, checking statements regularly, and asking questions about unclear charges, customers can protect themselves from unnecessary deductions.

How to avoid bank account fees?

Avoiding bank account fees requires awareness, discipline, and smart banking practices. Many people unknowingly pay monthly maintenance charges, ATM withdrawal fees, or penalty fees simply because they are not informed about their options.

The good news is that with careful planning, it is possible to reduce or completely avoid these fees.

The first step is to choose the right type of account. Some banks offer “zero maintenance fee” accounts or special savings accounts with minimal charges. Before opening an account, compare different banks to see which one offers the best deal for your lifestyle.

Another strategy is to maintain the required minimum balance. Many banks waive fees if customers keep a certain amount of money in their accounts. While this might seem difficult, even a small balance can sometimes prevent recurring charges.

Using your bank’s ATM network is another important way to avoid fees. Banks often charge extra for using third-party ATMs. By withdrawing only from your bank’s machines or digital channels, you can save money.

It also helps to monitor your account regularly. Checking balances frequently via mobile banking or USSD codes can prevent overdrafts, which often come with hefty penalties.

For people who transfer money frequently, using the bank’s digital platforms or mobile apps is usually cheaper than USSD or over-the-counter transfers. Some fintech platforms also offer free or low-cost transfers compared to traditional banks.

Negotiation is another overlooked strategy. Customers who maintain loyalty or hold large balances can sometimes request their banks to waive certain fees. All it takes is asking a customer service officer or submitting a formal request.

Additionally, avoid unnecessary services like paper statements, over-the-counter withdrawals, or inactive accounts that may attract charges. Instead, switch to e-statements and online banking for cheaper options.

In summary, here are key strategies to avoid bank account fees:

1. Choose a low-fee or zero-fee account.

2. Maintain the minimum balance required.

3. Use only your bank’s ATMs.

4. Monitor accounts to avoid overdrafts.

5. Use digital platforms for transfers.

6. Negotiate with your bank when possible.

7. Avoid unnecessary services that attract fees.

By applying these strategies, customers can save money and keep their accounts in good standing without being drained by hidden charges.

Which bank is highly recommended?

The question of which bank is “highly recommended” depends on what exactly you are looking for in a financial institution. Some people value digital convenience, others focus on strong customer service, while business owners may prefer banks with wider international reach.

In Nigeria, several banks are consistently recognized for their stability, services, and innovation, making them highly recommended in different categories.

If your focus is overall strength and size, Zenith Bank and Access Bank usually top the list. Both banks are among the largest in Nigeria, with billions in assets and wide branch networks.

Zenith Bank is particularly well known for its profitability and corporate banking services, while Access Bank has grown massively through acquisitions and is now one of the biggest banks in Africa.

For those who prefer digital convenience and low fees, modern digital banks such as Kuda and other fintech platforms are highly recommended. These banks are designed around mobile apps, making transactions simple and fast.

They often charge little or no account maintenance fees and provide features like savings goals, instant transaction notifications, and cashback offers. They are particularly attractive to younger customers who are comfortable with app-based banking.

If you want longstanding trust and a wide physical presence, First Bank and GTCO (formerly GTBank) are highly recommended. First Bank is the oldest bank in Nigeria and has branches in nearly every part of the country, making it an excellent choice for people in rural areas.

GTCO is admired for its reliable digital platforms and efficient services, making it popular among salary earners and entrepreneurs.

UBA (United Bank for Africa) is another bank that comes highly recommended, especially for those who engage in international transactions. With its presence in more than 20 African countries and offices in the United States, France, and the UK, UBA is one of the best options for cross-border banking.

In conclusion, the best bank depends on your needs:

• Zenith or Access Bank for size, stability, and corporate strength.

• Kuda and other digital banks for flexibility and minimal charges.

• First Bank and GTCO for trust, reliability, and nationwide presence.

• UBA for international services and cross-border banking.

Ultimately, the “highly recommended” bank is the one whose strengths match your personal or business requirements.

Which bank is best for savings in Nigeria?

The best bank for savings in Nigeria depends on what you value most — higher interest rates, safety of deposits, or flexible saving options. Some people want the highest possible returns, while others prefer security and easy access to their money.

If your goal is higher returns and flexible savings, digital banks and fintech platforms stand out. Apps like Kuda, PiggyVest, Cowrywise, and FairMoney allow customers to create savings plans, lock funds for a fixed time, or automate their savings.

These platforms often offer better interest rates than traditional savings accounts and are very convenient to use. They also allow you to start with smaller amounts, sometimes as low as ₦1,000, which makes them accessible to more people.

If you are more concerned with safety and stability, then traditional banks like Zenith Bank, Access Bank, First Bank, and GTCO are better choices. These banks are insured by the Nigeria Deposit Insurance Corporation (NDIC), meaning your deposits are protected up to a certain amount.

They also provide fixed deposit accounts, which usually offer higher interest rates than regular savings accounts, especially when you keep your money for longer periods.

For people who want wide access to branches and ATMs, First Bank is often considered the best option because of its massive network across Nigeria. GTCO, on the other hand, is a top recommendation for people who prefer a strong online banking experience combined with reliable customer support.

A good approach is to mix both options. For example, you can keep your emergency fund in a traditional bank account for safety and use a fintech platform for short-term savings goals where you want higher interest and flexibility.

Here are a few tips to maximize your savings:

1. Compare interest rates across different banks and platforms.

2. Choose fixed deposits if you can leave your money untouched for several months.

3. Use fintech apps for goal-based savings like rent, travel, or school fees.

4. Keep part of your savings in an NDIC-insured bank for added security.

In conclusion, if your priority is higher returns and flexibility, fintech platforms like Kuda, PiggyVest, and Cowrywise are the best choices. If your main concern is safety, trust, and stability, traditional banks such as Zenith, Access, First Bank, and GTCO are excellent options. The best choice is the one that aligns with your financial goals and risk tolerance.

Which bank is 75 years old in Nigeria?

When we talk about a bank that is around 75 years old in Nigeria, the most prominent name is First Bank of Nigeria. This institution is not only the oldest bank in Nigeria but also one of the most respected and stable in West Africa.

Established in 1894 as the Bank of British West Africa, First Bank has grown to become more than 125 years old today.

However, when people specifically refer to the 75-year mark, they usually point to the mid-20th century when Nigerian banks started gaining independence from colonial ownership and establishing themselves as trusted financial institutions for citizens.

By the time Nigeria gained independence in 1960, First Bank had already been operating for over 65 years. It continued to expand during the 1960s, 70s, and 80s, becoming one of the most recognized brands in Nigeria.

Its long history has allowed it to build a reputation for stability, making it a top choice for individuals, businesses, and even the government.

Another bank often mentioned in conversations about age is Union Bank, which was established in 1917 as a colonial bank before being renamed Union Bank in 1925. Like First Bank, Union Bank has also been around for more than a century, meaning it too crossed the 75-year milestone decades ago.

The 75-year mark is significant because it represents endurance and resilience. In Nigeria, many banks have collapsed, merged, or been taken over by regulators due to financial instability.

Any bank that has survived 75 years or more has shown the ability to adapt to economic challenges, political changes, and evolving customer needs.

Therefore, if you are looking for a Nigerian bank that has passed the 75-year milestone, the clear answers are First Bank of Nigeria and Union Bank. Both institutions have not only survived that long but also remained major players in the industry.

Today, they continue to serve millions of customers with modern banking services while carrying the legacy of being pioneers in the Nigerian banking sector.

Which bank took over UBA?

The question of which bank took over UBA (United Bank for Africa) can be a bit misleading because UBA was never fully taken over by another bank. Instead, UBA has grown through mergers and acquisitions, expanding its strength rather than being acquired.

The most significant event in UBA’s history was in 2005, when it merged with Standard Trust Bank (STB). At that time, the Central Bank of Nigeria had raised the minimum capital requirement for banks, which pushed many institutions to merge or consolidate.

Standard Trust Bank, led by Tony Elumelu, had grown aggressively and was considered one of the fastest-rising banks in Nigeria. The merger created a stronger UBA that combined UBA’s long history with Standard Trust Bank’s modern, innovative style of banking.

This merger was more of a strategic combination rather than a takeover. After the merger, UBA retained its name but adopted new leadership and business practices from Standard Trust Bank.

Tony Elumelu became the new Group Managing Director/CEO of UBA, and under his leadership, the bank expanded rapidly across Africa and beyond.

Today, UBA is one of the largest banks on the continent, operating in more than 20 African countries as well as in the United States, the United Kingdom, and France. It has become a global brand known for international banking, digital services, and strong customer support.

So, to clarify: no bank has taken over UBA in Nigeria. Instead, UBA itself has absorbed other banks and grown stronger through strategic moves. The most notable event was its merger with Standard Trust Bank in 2005, which transformed it into the powerhouse it is today.

In conclusion, UBA has never been “taken over” by another bank but has instead expanded through mergers and acquisitions. The 2005 merger with Standard Trust Bank remains the defining moment in its history, shaping it into one of Africa’s leading financial institutions.

Which is the oldest bank in Nigeria?

The oldest bank in Nigeria is First Bank of Nigeria, established in 1894. Originally founded as the Bank of British West Africa (BBWA), it was created to serve the financial needs of British merchants involved in trade along the West African coast.

Over time, BBWA expanded its operations, offering services beyond just trade financing and becoming a central part of Nigeria’s economic development.

In 1957, the bank changed its name from Bank of British West Africa to Bank of West Africa (BWA). By 1979, following a series of rebranding efforts and increasing Nigerian ownership, it became First Bank of Nigeria Limited. Today, it is widely known simply as First Bank, with its headquarters in Lagos.

First Bank’s longevity sets it apart in Nigeria’s financial landscape. While many banks have collapsed or been absorbed due to poor management, insufficient capital, or regulatory reforms, First Bank has survived numerous economic crises, political upheavals, and reforms introduced by the Central Bank of Nigeria. Its ability to adapt and modernize has kept it relevant for over a century.

Some of its key milestones include:

• Being the first to establish a branch network across Nigeria, giving it nationwide presence long before other banks.

• Playing a key role in financing government projects, businesses, and trade during the colonial period and after independence.

• Being one of the first Nigerian banks to embrace technology in banking, offering online banking and ATMs early compared to competitors.

Today, First Bank has thousands of employees, serves millions of customers, and operates branches not only in Nigeria but also in other parts of Africa and even the UK. Its reputation for stability has earned it the nickname “the bank of first choice.”

In conclusion, First Bank of Nigeria is the oldest bank in the country, with a history dating back to 1894. Its survival and continued growth demonstrate resilience, making it a trusted institution for generations of Nigerians.

Which banks are at most risk?

When discussing which banks are at most risk in Nigeria, it is important to note that the Central Bank of Nigeria (CBN) closely monitors all financial institutions to maintain stability.

However, not all banks face the same level of security and resilience. The level of risk a bank carries depends on factors such as capital strength, management practices, loan portfolio quality, technological investment, and compliance with regulations.

Smaller regional banks and microfinance banks are usually at greater risk compared to large, well-capitalized institutions like Zenith Bank, Access Bank, or First Bank.

This is because smaller banks may not have enough capital reserves to withstand sudden economic shocks or financial crises. They often operate with limited customer bases, making them more vulnerable if there is a sudden withdrawal of funds or a rise in non-performing loans.

Banks with poor risk management practices are also at higher risk. If a bank gives out too many loans without proper evaluation, it may end up with a high number of bad debts.

When customers fail to repay, the bank struggles to stay afloat. This was one of the main reasons behind the collapse of some banks in the past, such as Skye Bank and Intercontinental Bank.

Technological weakness is another factor that can put banks at risk. In today’s world, customers expect digital convenience. Banks that fail to invest in secure mobile banking, online platforms, and fraud protection systems risk losing customers to more innovative competitors. Cybersecurity threats are also real, and banks without strong digital defenses face risks of fraud and data breaches.

Economic instability in Nigeria, such as inflation, currency devaluation, and regulatory changes, can also expose weaker banks. Stronger banks can withstand these challenges, but smaller, less diversified institutions are more vulnerable.

That said, the CBN has a track record of intervening to prevent bank failures from destabilizing the entire system. For example, when Skye Bank was in trouble in 2018, the CBN intervened and created Polaris Bank to protect depositors.

In summary, the banks most at risk in Nigeria are usually the smaller banks, weakly capitalized banks, and those with poor digital systems or risk management practices. Larger, established institutions like Zenith, Access, First Bank, UBA, and GTCO are considered safer due to their size, capital base, and regulatory oversight.

What is the most secretive bank in the world?

When people talk about the most secretive bank in the world, the institution that comes to mind almost immediately is the Swiss banking system, particularly banks like Credit Suisse and UBS in Switzerland.

For decades, Swiss banks have built a global reputation for their strict confidentiality policies, often referred to as “banking secrecy.” This secrecy tradition dates back to the early 20th century when Swiss law made it illegal for banks to reveal the identities or details of their clients without their consent.

The secrecy offered by Swiss banks attracted not only wealthy individuals but also multinational corporations, celebrities, and even governments. People used these banks to hide their assets, protect their wealth from political instability, or reduce tax liabilities in their home countries.

For many years, Switzerland became the financial safe haven of choice because account holders could rest assured that their financial information would remain confidential.

However, in the past two decades, international pressure has forced Switzerland to relax some of its strict secrecy laws. Organizations like the OECD (Organisation for Economic Co-operation and Development) and governments such as the United States pushed for more transparency, particularly to fight tax evasion and money laundering.

For example, the US Foreign Account Tax Compliance Act (FATCA) made it mandatory for foreign banks to share information about American account holders. As a result, Swiss banks no longer operate with the same level of secrecy they once did.

Despite these changes, Swiss banks are still viewed as among the most secretive because they continue to maintain high levels of client confidentiality compared to banks in many other parts of the world.

Beyond Switzerland, some smaller financial centers such as Luxembourg, the Cayman Islands, and Singapore are also known for banking secrecy. These locations provide offshore accounts that offer privacy and tax advantages to foreign clients.

In conclusion, the most secretive banks in the world are traditionally the Swiss banks, though banking secrecy has weakened due to international regulations. They remain symbols of privacy and exclusivity in global finance, even though complete secrecy is no longer guaranteed.

Which bank is most stable?

The most stable banks in the world are usually the ones with strong capital reserves, global recognition, strict regulatory compliance, and a long history of surviving economic downturns.

Globally, banks in countries like Switzerland, Germany, Singapore, and Canada are often regarded as highly stable because these nations have strong economies, strict banking regulations, and relatively low political risk.

One of the banks often described as the most stable worldwide is Julius Baer Group in Switzerland, along with UBS and Credit Suisse (before its merger into UBS in 2023). These institutions are backed by the Swiss reputation for conservative banking practices and careful risk management.

Another strong example is Deutsche Bank in Germany and DBS Bank in Singapore, both of which are well-capitalized and internationally respected.

In Nigeria, the most stable banks are typically the Tier-1 banks, also known as FUGAZ, which stands for First Bank, UBA, GTCO (formerly GTBank), Access Bank, and Zenith Bank.

These banks have proven their strength by consistently ranking among the largest by assets, customer base, and profitability. They also have international branches, meaning they meet global banking standards.

Stability in banking does not just mean avoiding collapse; it also means being able to provide uninterrupted services even in times of economic hardship.

For instance, during currency devaluations, inflationary pressures, and liquidity crises in Nigeria, these top banks have shown resilience because of their ability to raise capital, attract foreign investment, and diversify their operations across multiple sectors and regions.

Factors that make a bank stable include:

• Strong capital adequacy ratio: The ability to absorb financial shocks.

• Diverse sources of income: Not relying only on one business line.

• Good governance: Experienced leadership and transparent practices.

• Large customer base: A wide spread of deposits reduces vulnerability.

In conclusion, the most stable banks globally are typically found in Switzerland, Germany, Canada, and Singapore, while in Nigeria, the FUGAZ banks (First Bank, UBA, GTCO, Access, and Zenith) are considered the most stable due to their strong financial positions and proven history of survival in tough times.

Which bank is about to collapse in Nigeria?

When discussing whether a bank is about to collapse in Nigeria, it is important to approach the subject carefully. As of now, no major Nigerian bank is officially confirmed to be on the verge of collapse.

The Central Bank of Nigeria (CBN) plays an active role in monitoring and regulating all commercial banks to prevent financial instability. Whenever a bank faces distress, the CBN usually steps in to restructure, merge, or recapitalize the bank rather than allowing it to fail outright.

A good example is what happened in 2018 with Skye Bank. The CBN intervened due to the bank’s weak financial position and poor corporate governance. Rather than letting it collapse completely, the CBN created Polaris Bank, which took over Skye Bank’s assets and liabilities, ensuring depositors’ funds were safe.

This shows that while individual banks may face challenges, the regulatory system in Nigeria works to protect customers and maintain confidence in the financial system.

That being said, smaller banks, regional banks, and microfinance institutions are generally more vulnerable than the larger, well-capitalized Tier-1 banks such as Zenith Bank, Access Bank, UBA, First Bank, and GTCO. Smaller banks may struggle with:

• Poor liquidity: If they cannot meet withdrawal demands from customers.

• High non-performing loans: When too many borrowers default on loans.

• Weak digital infrastructure: Making it harder to compete in modern banking.

• Management problems: Poor leadership and corruption can weaken a bank’s structure.

The Nigerian economy itself also puts pressure on banks. Issues like inflation, currency devaluation, and government policies can strain weaker institutions. For instance, banks that rely heavily on foreign exchange transactions may struggle during times of forex scarcity.

In summary, no major Nigerian bank is currently confirmed to be collapsing, but smaller banks and poorly managed institutions remain at risk. Thanks to the CBN’s regulatory oversight, outright collapse is rare; instead, troubled banks are restructured, merged, or taken over to protect customers.

Which bank controls other banks in Nigeria?

In Nigeria, the bank that controls other banks is not a commercial bank but the Central Bank of Nigeria (CBN). The CBN acts as the apex financial authority, regulating and supervising the activities of all banks in the country.

It is often referred to as the “bank of banks” because it provides financial guidance, ensures stability, and sets the rules that commercial banks must follow.

The CBN was established in 1958 and officially began operations in 1959. Since then, it has been the backbone of Nigeria’s financial system. Its primary functions include:

• Issuing currency: The CBN is the only institution authorized to print and issue the naira.

• Regulating banks: It monitors commercial banks, microfinance banks, and other financial institutions to ensure they follow proper practices.

• Maintaining stability: The CBN intervenes if a bank is failing or facing liquidity problems, as seen in the case of Skye Bank.

• Monetary policy: It sets interest rates, reserve requirements, and other policies that influence how banks operate.

• Foreign exchange management: It controls access to forex and stabilizes the naira.

Commercial banks like First Bank, Zenith Bank, Access Bank, UBA, and GTCO are powerful in terms of assets and customer reach, but none of them controls the banking sector. They all operate under the strict oversight of the CBN.

Additionally, the Nigeria Deposit Insurance Corporation (NDIC) works alongside the CBN to protect depositors. The NDIC guarantees that if a bank fails, customers’ deposits (up to a certain limit) are insured. This adds another layer of protection for the financial system.

In conclusion, the Central Bank of Nigeria is the only bank that controls other banks in Nigeria. It regulates, supervises, and provides stability to ensure public confidence in the banking system. Commercial banks are powerful, but they remain subject to the authority of the CBN.

Are online banks safer than physical banks?

The debate about whether online banks are safer than physical banks depends on how we define safety. Safety in banking can be measured in terms of fund security, accessibility, regulation, and risk management.

Online banks, also called digital-only banks or neobanks, operate without physical branches. Examples include OPay, Kuda, and Carbon in Nigeria. These banks rely heavily on technology, offering customers convenient services through mobile apps and online platforms.

Their safety comes primarily from encryption, strong cybersecurity measures, and regulatory oversight. Many online banks partner with licensed financial institutions or operate under the supervision of the Central Bank of Nigeria (CBN) and are also insured by the Nigeria Deposit Insurance Corporation (NDIC). This ensures that customers’ deposits are protected up to a certain limit, just like in traditional banks.

However, online banks do face specific risks. Cyberattacks, phishing scams, and system downtime can threaten users’ money if proper security measures are not in place. Customers who are not tech-savvy may also fall victim to fraud more easily.

On the positive side, online banks often invest heavily in multi-factor authentication, biometric logins, and real-time alerts, which strengthen security compared to some traditional banks.

Physical banks, on the other hand, have a long history and physical presence. Institutions like Zenith, First Bank, and Access Bank give customers the reassurance of brick-and-mortar branches where issues can be resolved face-to-face.

They are also strictly regulated by the CBN and have larger capital bases compared to most digital banks. This makes them highly reliable in terms of stability and liquidity.

That said, physical banks are not immune to risk. They can face challenges such as fraud, insider misconduct, or even branch-level inefficiencies. Additionally, some customers view physical banks as slower in adopting modern security technologies compared to online banks.

In conclusion, both online and physical banks are safe as long as they are licensed and regulated by the CBN and insured by the NDIC. Online banks are convenient and technologically advanced, but they face higher cyber-related risks.

Physical banks are more traditional and stable, but sometimes less flexible. The safest choice depends on the customer’s preference: tech-savvy individuals may find online banks both secure and convenient, while conservative customers may trust physical banks more for their long-standing reputation.

Which bank is the best for fixed deposit in Nigeria?

A fixed deposit account allows customers to lock in a certain amount of money with a bank for a specified period, earning interest at an agreed rate. It is one of the safest investment options in Nigeria, especially for individuals who want guaranteed returns without the risks of stock markets or forex trading.

The best bank for fixed deposit in Nigeria depends on factors such as interest rates, reliability, customer service, and ease of withdrawal.

Generally, the Tier-1 banks — also known as FUGAZ banks (First Bank, UBA, GTCO, Access Bank, and Zenith Bank) — are considered the best options for fixed deposits.

These banks are highly stable, well-regulated, and trusted by millions of Nigerians. They may not always offer the highest interest rates compared to smaller banks, but their reliability ensures that your money is safe.

For example:

• First Bank of Nigeria: Known for stability and long-term trust. Offers competitive fixed deposit rates depending on the amount and duration.

• Zenith Bank: Popular among corporate clients and individuals looking for high security. Interest rates vary, but the process is transparent.

• Access Bank: Provides flexible fixed deposit options with varying tenures and negotiable rates for large amounts.

• GTCO (GTBank): Appeals to customers who want efficiency, digital access, and flexible withdrawal terms.

• UBA: Offers fixed deposit services with an international banking reputation.

Smaller banks and some microfinance institutions may offer higher interest rates on fixed deposits to attract customers. However, they may carry slightly higher risks compared to larger, more established banks. This is why many people prefer Tier-1 banks for peace of mind, even if the interest rates are a little lower.

When choosing a bank for fixed deposits, customers should also consider:

• Tenure flexibility: The ability to choose between short-term (30–90 days) or long-term (1–2 years).

• Early withdrawal policies: Some banks allow partial withdrawals with reduced interest.

• Minimum deposit amount: Fixed deposits usually require a higher starting balance compared to savings accounts.

In conclusion, the best banks for fixed deposits in Nigeria are the major Tier-1 institutions such as First Bank, Zenith, GTCO, Access, and UBA.

They may not always offer the absolute highest rates, but they provide unmatched stability, regulatory compliance, and customer trust. For customers seeking higher rates, smaller banks or digital banks can be an option — but these come with more risk.

Which bank is highly recommended?

The choice of a highly recommended bank depends on what a customer is looking for—whether it is stability, digital convenience, customer service, or investment opportunities.

In Nigeria, the most recommended banks are usually the Tier-1 banks because of their size, stability, and strong regulatory compliance. These include Zenith Bank, GTCO (GTBank), Access Bank, First Bank, and UBA.

Zenith Bank is highly recommended for its strong financial base and excellent reputation in corporate and retail banking. It is one of the most capitalized banks in Nigeria, making it stable and trustworthy for individuals and businesses.

GTCO (formerly GTBank) is often recommended for tech-savvy individuals. Its digital banking platforms are easy to use, and it provides a smooth online experience for transactions, bill payments, and customer support.

Access Bank is recommended for its wide network of branches and accessibility across Nigeria and beyond. After merging with Diamond Bank, it became one of the largest banks in Africa by customer base.

First Bank of Nigeria is a strong recommendation for customers who value trust and history. As the oldest bank in the country, it has proven resilience through Nigeria’s economic changes and remains reliable for savings, investments, and fixed deposits.

UBA (United Bank for Africa) is highly recommended for international transactions. It operates in over 20 African countries and has offices in London, New York, and Paris, making it perfect for individuals and businesses dealing with cross-border transactions.

Beyond these Tier-1 banks, newer digital banks like Kuda, Opay, and PalmPay are also gaining recommendations because of their convenience, zero transfer fees (in many cases), and user-friendly apps. However, they may not yet be as stable or capitalized as the traditional Tier-1 institutions.

In conclusion, the most highly recommended banks in Nigeria are Zenith Bank, GTCO, Access Bank, First Bank, and UBA—each excelling in different areas. Customers should choose based on their needs: corporate transactions (Zenith), digital convenience (GTCO), wide access (Access Bank), trust (First Bank), or international banking (UBA).

Which bank is best for savings in Nigeria?

When it comes to the best bank for savings in Nigeria, customers usually look for three main things: good interest rates, security of funds, and easy access to savings. While most commercial banks offer savings accounts, some stand out for their reliability and customer-friendly savings products.

GTCO (GTBank) is considered one of the best for savings because of its digitally driven platforms and reliable interest rates. Customers can easily open savings accounts online and manage them through the GTWorld app, making it convenient for tech-savvy individuals.

Access Bank also offers strong savings account options. With its wide network, it is particularly useful for customers in both urban and rural areas. Its High Interest Deposit Account (HIDA) is one of the best savings products, giving customers competitive interest rates on large balances.

Zenith Bank is also a top choice. It is widely trusted for stability, and customers have confidence that their savings are secure. Though Zenith may not always give the highest interest rates compared to smaller banks, its reputation for safety and excellent customer service makes it appealing.

Which bank is highly recommended?

The answer to which bank is highly recommended depends on the needs of the customer, but in Nigeria, the most commonly recommended banks are the Tier-1 banks, also called the FUGAZ banks: First Bank, UBA, GTCO (Guaranty Trust), Access Bank, and Zenith Bank. These banks are the largest, most stable, and most recognized both locally and internationally.

1. Zenith Bank – Highly recommended for corporate clients, business owners, and high-net-worth individuals. It is known for stability, professionalism, and strong customer service in the business banking sector.

2. GTCO (formerly GTBank) – Recommended for young professionals, entrepreneurs, and digital-savvy customers. It is one of the most innovative banks in Nigeria, offering user-friendly apps, fast transactions, and reliable internet banking.

3. First Bank of Nigeria – Recommended for those seeking trust, reliability, and experience. As the oldest bank in Nigeria, it has a wide branch network and a long history of serving millions of customers.

4. UBA (United Bank for Africa) – Recommended for customers who want a bank with international presence. UBA operates in over 20 African countries and even has branches in the United States, the UK, and France.

5. Access Bank – Recommended for those who want modern banking solutions and extensive customer reach. After its merger with Diamond Bank, Access Bank became the largest in terms of customer base, making it attractive for retail customers.

The recommendation also depends on purpose:

• For business banking: Zenith Bank and Access Bank are excellent.

• For international transactions: UBA and First Bank are top choices.

• For digital banking: GTCO leads with its efficient online platforms.

• For everyday savings and wide reach: First Bank and Access Bank are reliable.

In conclusion, while each bank has its strengths, Zenith Bank, GTCO, Access Bank, UBA, and First Bank are the most highly recommended in Nigeria because of their stability, size, and proven reliability.

Which bank is best for savings in Nigeria?

When it comes to the best bank for savings in Nigeria, customers usually look at interest rates, accessibility, convenience, and safety of funds. While almost all commercial banks offer savings accounts, some stand out for their customer-friendly policies.

1. GTCO (GTBank) – Known for its digital efficiency, GTCO offers convenient savings account options with easy transfers, mobile banking, and automated savings features. It appeals especially to young professionals and students who want stress-free banking.

2. Access Bank – With its variety of savings account options, Access Bank allows customers to choose accounts based on their goals, such as fixed savings, target savings, or student savings. It also integrates mobile apps and USSD banking for convenience.

3. Zenith Bank – While Zenith is primarily known for business banking, it also provides solid savings account options for individuals. It offers reliability and strong security, making it a safe choice for people who prioritize stability.

4. First Bank of Nigeria – With its wide branch network, First Bank is the best option for customers who value accessibility. Rural and urban customers can easily find branches or ATMs, which makes it ideal for families and older customers.

5. UBA (United Bank for Africa) – UBA’s savings products are attractive for customers who make frequent local or international transfers. Its savings accounts often come with debit cards and digital banking features that make saving easier.

Digital banks like Kuda, OPay, and V Bank are also becoming popular for savings. They usually offer higher interest rates compared to traditional banks because they have lower operating costs.

For example, Kuda Bank markets itself as “the bank of the free,” with little to no maintenance charges, which makes it attractive to younger customers who want to maximize their savings.

In choosing the best bank for savings, customers should consider:

• Interest rates – Higher rates mean faster growth on savings.

• Charges – Hidden fees can reduce savings significantly.

• Accessibility – Both physical branches and digital platforms matter.

• Reputation and safety – Established banks like Zenith, First Bank, and UBA provide security and peace of mind.

In conclusion, the best banks for savings in Nigeria include GTCO, Access Bank, Zenith, First Bank, UBA, and increasingly digital banks like Kuda and OPay. The right choice depends on whether the customer prioritizes high interest rates, convenience, or long-term security.

Which is the oldest bank in Nigeria?

The oldest bank in Nigeria is First Bank of Nigeria, established in 1894. It began operations as the Bank of British West Africa (BBWA) under the leadership of Sir Alfred Jones, a shipping magnate from Liverpool.

At the time, its primary role was to support British commercial activities along the West African coast, particularly trade in agricultural goods, raw materials, and imported products.

Over the years, the bank expanded beyond serving colonial interests. By the mid-20th century, it had developed into a full-service financial institution providing services to individuals, businesses, and governments in Nigeria.

In 1957, it was renamed Bank of West Africa (BWA), and by 1979, following rebranding and increased Nigerian ownership, it officially became First Bank of Nigeria Limited.

First Bank’s long history makes it unique because it has survived wars, economic downturns, and various banking reforms that caused many other banks to fail.

For instance, during the Nigerian banking consolidation reforms in 2004–2005, several smaller banks merged or closed down, but First Bank remained strong. This resilience has earned it the nickname “the bank of first choice.”

Its milestones include:

• Being the first bank to establish nationwide branches across Nigeria.

• Playing a major role in financing infrastructure projects and government activities after independence.

• Consistently ranking among the top Nigerian banks in terms of assets, customer base, and profitability.

• Expanding internationally, with branches in London and representative offices in other countries.

Today, First Bank is more than just the oldest; it is also one of the most respected and trusted banks in Nigeria and West Africa. It has millions of customers, thousands of employees, and remains a leader in retail and corporate banking.

In conclusion, the oldest bank in Nigeria is First Bank of Nigeria, founded in 1894. Its history, resilience, and continued relevance make it a cornerstone of Nigeria’s financial system.

Which banks are at most risk?

In Nigeria, the banks most at risk are typically smaller, weaker institutions rather than the large, well-capitalized ones. Risk in banking refers to the possibility of financial failure, inability to meet obligations, or loss of customer confidence.

The factors that put some banks at risk include:

1. Poor Capital Base – Banks with little capital struggle to withstand financial shocks such as sudden withdrawals by customers or currency fluctuations.

2. High Non-Performing Loans (NPLs) – If too many borrowers fail to repay their loans, the bank’s financial health becomes threatened.

3. Weak Management Practices – Corruption, poor leadership, and lack of innovation can make a bank unstable.

4. Technological Deficiencies – In today’s banking world, digital banking is essential. Banks without strong online systems are at risk of losing customers and facing fraud.

5. Economic Pressures – Inflation, devaluation of the naira, and forex scarcity can affect smaller banks more than larger ones.

The Tier-1 banks — Zenith, GTCO, First Bank, Access Bank, and UBA (collectively called FUGAZ) — are considered the safest because of their size, capital reserves, and international presence. They have consistently weathered economic storms and maintained customer trust.

By contrast, regional banks, smaller commercial banks, and some microfinance banks face higher risks. For example, in 2018, Skye Bank collapsed due to poor financial management, but it was quickly replaced by Polaris Bank through intervention by the Central Bank of Nigeria (CBN). This shows that weaker banks can fail if not properly managed.

It is also worth noting that the CBN actively prevents bank collapses. When banks face difficulties, the CBN can force mergers, provide bailout funds, or restructure the bank. This regulatory oversight reduces the likelihood of complete failure but does not entirely remove the risks smaller banks face.

In conclusion, the banks most at risk in Nigeria are generally the smaller and less capitalized institutions, while the Tier-1 banks remain the most secure. Customers who prioritize safety should choose well-established banks with a proven history of stability.

What is the most secretive bank in the world?

When discussing the most secretive bank in the world, Swiss banks are almost always the first to come to mind. Switzerland has built a global reputation for banking confidentiality, and institutions such as UBS and Credit Suisse have long been associated with privacy and discretion.

The country’s banking secrecy laws historically made it illegal for banks to reveal clients’ financial information without consent, creating a sense of absolute confidentiality.

The roots of Swiss banking secrecy date back to the early 1930s, during a period of global political instability. Switzerland used secrecy laws to attract foreign investors and individuals seeking to protect their wealth from potential political or economic risks in their home countries.

Over time, this policy helped the country become a safe haven for wealthy individuals, multinational corporations, and even governments.

Swiss banks are particularly attractive to clients who wish to protect their assets. People often choose Swiss banks to diversify investments internationally, maintain privacy in business dealings, or secure their wealth against currency volatility or political uncertainty.

For decades, this level of secrecy was unmatched globally, giving Swiss banks a unique position in international finance.

However, international pressures in recent years have reduced the extent of secrecy. Initiatives such as the Common Reporting Standard (CRS) and agreements with the United States’ FATCA program require Swiss banks to disclose information about foreign clients to their home countries.

Despite this, Swiss banks remain highly secretive compared to most global banks, offering privacy and discretion within legal boundaries.

Outside Switzerland, other financial hubs known for secrecy include Luxembourg, the Cayman Islands, and Singapore. These countries offer similar protections for account holders and often provide offshore accounts for individuals and companies seeking privacy and tax efficiency.

In conclusion, the most secretive banks in the world are Swiss banks, particularly UBS and Credit Suisse, though offshore banks in other countries also provide high levels of confidentiality.

While modern regulations have limited total secrecy, these banks continue to be recognized for their discretion, security, and privacy in global finance.

Which bank is most stable?

The most stable banks are those that can maintain their operations, protect customer deposits, and survive economic shocks consistently. Stability depends on several factors, including capital reserves, governance, risk management, size, and regulatory compliance.

Globally, Swiss banks like UBS and Julius Baer, Canadian banks such as Royal Bank of Canada, and Singaporean banks like DBS Bank are widely recognized as stable institutions.

They operate in economies with strong regulatory frameworks, low political risk, and stringent banking standards, which allow them to withstand financial crises effectively.

In Nigeria, stability is associated with the Tier-1 banks, also known as FUGAZ — First Bank, UBA, GTCO, Access Bank, and Zenith Bank. These banks are large, well-capitalized, and heavily regulated. Their stability comes from multiple sources:

• Strong capital reserves, which allow them to absorb shocks.

• Diversified income streams, reducing dependence on any single revenue source.

• Robust governance structures, ensuring transparency and minimizing internal risk.

• Large customer bases, spreading risk and ensuring liquidity.

Tier-1 banks in Nigeria have consistently survived economic challenges, including currency fluctuations, inflation, and regulatory reforms. Their ability to innovate, adopt technology, and expand both domestically and internationally also contributes to their long-term stability.

Smaller banks and microfinance institutions, by contrast, are often less stable. They may struggle with inadequate capital, poor management, and insufficient risk controls. For this reason, many Nigerians prefer to keep significant savings or conduct major transactions with Tier-1 banks.

In conclusion, the most stable banks globally are found in countries with strong regulatory systems, such as Switzerland, Canada, and Singapore. In Nigeria, the most stable banks are First Bank, Zenith Bank, GTCO, Access Bank, and UBA, thanks to their size, capitalization, and proven resilience.

These banks can maintain operations and protect customer assets even during periods of economic uncertainty, making them reliable choices for individuals and businesses.

Which bank is about to collapse in Nigeria?

Predicting which bank is about to collapse in Nigeria is challenging because the Central Bank of Nigeria (CBN) actively monitors all banks to prevent financial instability.

No major bank in Nigeria is officially confirmed to be on the verge of collapse as of now. However, smaller and poorly managed banks are generally considered more vulnerable than the large Tier-1 banks.

Banks face collapse when they cannot meet their financial obligations, usually due to weak capital reserves, high levels of non-performing loans, poor risk management, or mismanagement of funds.

Smaller commercial banks and microfinance banks are particularly vulnerable because they operate with limited customer deposits and fewer resources to absorb shocks.

Historically, weaker banks have faced regulatory intervention rather than outright collapse. A notable example is Skye Bank, which experienced severe liquidity and management problems in 2018.

Instead of letting it fail completely, the CBN intervened and created Polaris Bank, transferring the assets and liabilities of Skye Bank to protect depositors. This shows that the banking regulatory framework in Nigeria actively prevents widespread failure.

Other warning signs that a bank might be at risk include:

• Frequent delays in customer withdrawals or payments.

• Persistent rumors about financial instability or regulatory investigations.

• Low profitability over multiple years, combined with declining deposits.

• Limited digital presence or outdated banking technology that affects efficiency and security.

It is important to note that Tier-1 banks like Zenith, Access Bank, UBA, First Bank, and GTCO are extremely unlikely to collapse due to their size, strong capital base, and regulatory oversight.

These banks have consistently demonstrated resilience even during economic downturns, currency devaluations, and inflationary pressures.

In conclusion, no major Nigerian bank is currently on the verge of collapse. The banks most at risk tend to be smaller commercial banks and microfinance institutions with weak management, limited capital, and outdated systems.

The CBN’s proactive regulation ensures that troubled banks are either restructured, merged, or recapitalized to protect customers and maintain overall financial stability.

Which bank controls other banks in Nigeria?

In Nigeria, the bank that controls other banks is not a commercial institution but the Central Bank of Nigeria (CBN). The CBN is the apex regulatory authority of the Nigerian banking system, often referred to as the “bank of banks” because it oversees, regulates, and supervises all financial institutions operating in the country.

The Central Bank of Nigeria was established in 1958 and began operations in 1959. Its primary responsibilities include issuing currency, controlling monetary policy, supervising banks, and maintaining financial stability.

The CBN ensures that all commercial banks comply with regulations, maintain adequate capital reserves, and operate transparently.

Key functions of the CBN include:

• Regulating commercial banks: The CBN issues licenses, monitors compliance, and enforces banking laws to protect customers.

• Maintaining financial stability: In cases of failing banks, the CBN can restructure, merge, or even take over the bank to prevent collapse, as seen with Skye Bank.

• Controlling liquidity and monetary policy: By setting interest rates, cash reserve requirements, and foreign exchange policies, the CBN indirectly controls how commercial banks operate.

• Protecting depositors: In collaboration with the Nigeria Deposit Insurance Corporation (NDIC), the CBN ensures that customer deposits are insured up to a certain limit in case of bank failure.

While commercial banks like Zenith, Access, First Bank, UBA, and GTCO are powerful in terms of assets and customer reach, none of them have authority over other banks. All commercial banks operate under the strict supervision of the CBN.

In conclusion, the Central Bank of Nigeria is the only institution that controls other banks in Nigeria. It regulates, supervises, and ensures the stability of the entire banking system, acting as the ultimate authority over both small and large banks.

Commercial banks are independent in daily operations but remain subject to the rules and oversight of the CBN to maintain financial stability and protect customers.

Are online banks safer than physical banks?

The question of whether online banks are safer than physical banks depends on how we define “safety.” Safety in banking can mean protection of funds, security of transactions, regulatory compliance, and overall reliability.

Online banks, also known as digital banks or neobanks, operate primarily through apps and online platforms. Examples in Nigeria include Kuda, Opay, and Carbon. These banks offer convenience, allowing users to transfer money, pay bills, and manage accounts from smartphones.

From a security perspective, online banks rely heavily on encryption, multi-factor authentication, biometric logins, and real-time alerts. Many online banks are also NDIC-insured and regulated by the Central Bank of Nigeria (CBN), which ensures that customer deposits are protected up to a certain amount.

However, digital banks face unique risks. Cybersecurity threats, including hacking, phishing, and malware attacks, are constant concerns. Users who are not careful with passwords or devices can become vulnerable to fraud.

System outages or app glitches can temporarily restrict access to funds. Despite these risks, digital banks often implement stronger technological safeguards than many traditional banks because their entire model relies on secure online services.

Physical banks, such as Zenith Bank, First Bank, and Access Bank, provide brick-and-mortar branches and face-to-face services. Customers often feel safer knowing there is a physical location where issues can be resolved personally.

Traditional banks also maintain strong regulatory compliance, insurance on deposits, and well-capitalized reserves, which adds to their stability. They have also increasingly invested in digital infrastructure, combining the benefits of physical security with online convenience.

In conclusion, both online and physical banks are safe when properly regulated. Online banks offer advanced technological safeguards, convenience, and efficiency, but carry risks related to cyber threats. Physical banks provide reassurance through established reputations, regulatory compliance, and a tangible presence.

Customers who are tech-savvy may prefer digital banks for convenience and innovation, while conservative customers might prioritize physical banks for long-standing reliability. Ultimately, the safest choice depends on personal preference, banking habits, and risk tolerance.

Which bank is the best for fixed deposit in Nigeria?

A fixed deposit (FD) account is a banking product where customers lock a sum of money for a predetermined period, earning interest at a fixed rate.

Fixed deposits are one of the safest ways to save money in Nigeria because they offer guaranteed returns and are generally NDIC-insured. The best bank for fixed deposits depends on interest rates, reliability, flexibility, and ease of access.

Tier-1 banks in Nigeria, also known as FUGAZ — First Bank, UBA, GTCO, Access Bank, and Zenith Bank — are widely considered the best choices for fixed deposits due to their stability and strong regulatory compliance.

• First Bank of Nigeria: Offers various fixed deposit options with competitive interest rates and flexible tenures. It is ideal for customers who value a wide branch network and long-term trust.

• Zenith Bank: Known for corporate clients and high-net-worth individuals, Zenith offers reliable fixed deposit schemes with competitive rates and secure management of funds.

• GTCO (GTBank): Provides easy-to-manage fixed deposit accounts with flexible tenures, making it appealing for tech-savvy and young professionals.

• Access Bank: Offers various FD options with flexible periods ranging from a few months to multiple years, catering to both individual and corporate clients.

• UBA: Its fixed deposit accounts are particularly attractive for individuals who make frequent local and international transactions, combining accessibility with safety.

Some smaller banks and fintech platforms also offer higher interest rates on fixed deposits due to lower operational costs. Digital banks like Kuda and PiggyVest allow users to create goal-based savings accounts that function like fixed deposits. However, these banks may carry slightly higher risks than the major Tier-1 banks.

When selecting the best bank for fixed deposits, customers should consider:

• Interest rate: Higher rates yield better returns.

• Tenure: Flexibility to choose short-term or long-term deposit periods.

• Early withdrawal policy: Some banks allow partial withdrawal with reduced interest.

• Deposit insurance: NDIC-insured banks provide an added layer of security.

In conclusion, for safety, reliability, and stability, the best banks for fixed deposits in Nigeria are the Tier-1 banks: First Bank, Zenith, GTCO, Access Bank, and UBA.

For customers seeking higher returns and flexibility, fintech platforms like Kuda and PiggyVest can be considered, though they may carry more operational risk. The ideal choice depends on balancing interest rates, security, and convenience.

Which bank is highly recommended?

The term “highly recommended bank” depends on the specific needs of the customer, whether it is stability, customer service, digital convenience, or international reach.

In Nigeria, the banks most consistently recommended are the Tier-1 banks, also called the FUGAZ banks: First Bank, UBA, GTCO (Guaranty Trust), Access Bank, and Zenith Bank. These banks are recognized for their stability, large customer bases, regulatory compliance, and wide range of services.

1. Zenith Bank – Often recommended for corporate clients, high-net-worth individuals, and businesses. Zenith Bank is renowned for strong financial stability, reliable customer service, and efficient corporate banking operations.

2. GTCO (GTBank) – Highly recommended for young professionals, entrepreneurs, and digital-savvy customers. GTBank offers innovative banking solutions, user-friendly apps, fast transactions, and excellent internet banking services.

3. First Bank of Nigeria – Recommended for individuals who value trust and longevity. As the oldest bank in Nigeria, it has an extensive branch network and a reputation for reliability. First Bank is ideal for customers in both urban and rural areas due to its accessibility.

4. UBA (United Bank for Africa) – Recommended for customers requiring international banking services. UBA operates in over 20 African countries and has offices in the United States, the UK, and France, making it a strong option for cross-border transactions.

5. Access Bank – Recommended for retail customers and businesses looking for modern banking solutions. Following its merger with Diamond Bank, Access Bank became one of the largest banks in Nigeria in terms of customer base and offers a variety of accounts to meet different financial needs.

The recommendation also depends on the purpose of banking:

• Business banking: Zenith Bank and Access Bank

• International transactions: UBA and First Bank

• Digital banking convenience: GTCO

• Everyday savings and wide reach: First Bank and Access Bank

In conclusion, while each bank has specific strengths, Zenith Bank, GTCO, Access Bank, UBA, and First Bank are the most highly recommended in Nigeria due to their size, stability, reputation, and ability to meet diverse customer needs.

Which bank is best for savings in Nigeria?

When selecting the best bank for savings in Nigeria, customers generally consider interest rates, accessibility, security, and convenience. While most banks provide savings accounts, some stand out due to their combination of safety, modern banking technology, and customer-friendly features.

1. GTCO (GTBank) – Known for efficient digital banking, GTBank is ideal for individuals who want to manage their savings via smartphones or computers. It offers automated savings options, seamless transfers, and user-friendly mobile banking features, making it popular among young professionals.

2. Access Bank – Offers a variety of savings products, including fixed savings, target savings, and student savings accounts. Its mobile app and USSD services allow customers to save conveniently and track their funds anytime.

3. Zenith Bank – Provides reliable savings accounts with competitive interest rates. Known for stability and strong security, Zenith is suitable for customers prioritizing the safety of their funds over high-risk savings.

4. First Bank of Nigeria – Offers wide accessibility due to its extensive branch network. Ideal for families and older customers who prefer in-person banking alongside digital services. First Bank balances convenience and trust effectively.

5. UBA (United Bank for Africa) – Its savings accounts are ideal for customers who frequently make both local and international transactions. UBA combines digital banking convenience with a strong reputation for reliability.

Digital-only banks like Kuda, Opay, and PiggyVest are also gaining popularity for savings. They usually offer higher interest rates compared to traditional banks due to lower operational costs and provide goal-oriented savings plans.

However, traditional banks remain the safest option because they are NDIC-insured and have proven stability over decades.

Factors to consider when choosing a savings bank include:

• Interest rates – Higher rates grow savings faster.

• Accessibility – Availability of branches, ATMs, and digital platforms.

• Fees – Low or no maintenance fees preserve your savings.

• Security – NDIC insurance and regulatory compliance ensure fund protection.

In conclusion, the best banks for savings in Nigeria are GTCO, Access Bank, Zenith, First Bank, and UBA, with digital banks like Kuda and PiggyVest emerging as attractive options for tech-savvy users seeking higher returns. The ideal choice depends on whether the customer prioritizes security, interest rates, or convenience.

Which bank is 75 years old in Nigeria?

When referring to a bank that is approximately 75 years old in Nigeria, the most prominent institution is First Bank of Nigeria. First Bank is widely recognized as the oldest and one of the most respected banks in Nigeria, with a long-standing history that dates back to 1894.

Although it is now over 125 years old, its prominence at the 75-year mark (around the late 1960s to early 1970s) reflects its significance in Nigeria’s post-independence banking landscape.

First Bank began as the Bank of British West Africa (BBWA), initially created to serve the commercial interests of British traders. Over time, it expanded services to local Nigerians, helping individuals, businesses, and government institutions manage finances effectively.

Its long-term stability allowed it to survive the economic and political changes that affected Nigeria in the mid-20th century, including colonial transitions and the post-independence economic reforms.

By the 1960s and 1970s, First Bank had established itself as a key pillar in Nigeria’s financial system. It had a wide branch network across major cities, which allowed it to reach urban and rural populations alike.

Its role during this period was not limited to commercial banking; it also helped fund infrastructural projects, industrial development, and government programs.

Other banks like Union Bank, established in 1917, also crossed the 75-year milestone decades ago. However, First Bank’s recognition as the most notable institution at this age is due to its sheer size, reach, and enduring legacy.

In conclusion, the bank that is historically recognized as being 75 years old in Nigeria is First Bank of Nigeria. Its long history, stability, and ability to adapt to changing economic and political landscapes have cemented its position as one of the most trusted and influential banks in the country.

Which bank took over UBA?

The question of which bank took over UBA (United Bank for Africa) can be misleading because UBA was never fully taken over by another bank. Instead, it has grown through mergers and acquisitions.

The most significant event in UBA’s history was its merger with Standard Trust Bank (STB) in 2005.

During the early 2000s, the Central Bank of Nigeria (CBN) introduced reforms requiring banks to meet higher minimum capital requirements. Many smaller banks struggled to meet these new standards, prompting mergers to strengthen their financial positions.

Standard Trust Bank, a fast-growing and innovative bank led by Tony Elumelu, merged with UBA to create a larger, more competitive institution.

After the merger, UBA retained its name but benefited from new management practices, innovative banking strategies, and increased capitalization.

Tony Elumelu became the Group Managing Director/CEO, guiding UBA through rapid expansion across Africa and internationally. The merger was a strategic combination rather than a takeover, allowing UBA to maintain its legacy while gaining the advantages of Standard Trust Bank’s modern operations.

Since the merger, UBA has expanded its presence to over 20 African countries, as well as the United States, the United Kingdom, and France. It has become a globally recognized financial institution, offering both corporate and retail banking services while maintaining a strong digital banking platform.

In conclusion, UBA was never taken over by another bank. Instead, it merged with Standard Trust Bank in 2005, which strengthened its position and expanded its operations internationally.

The merger allowed UBA to combine historical reputation with innovative management, positioning it as one of Africa’s leading banks today.

Which bank gives interest every month?

Many banks in Nigeria offer savings accounts that pay interest monthly, but the actual payout depends on the bank’s policies and the type of account. Traditional commercial banks as well as some digital banks provide this service to encourage regular savings and financial discipline.

1. Traditional Banks:

Tier-1 banks like GTCO (GTBank), Access Bank, Zenith Bank, First Bank, and UBA typically offer savings accounts where interest is either calculated daily and paid monthly or quarterly. For instance:

• GTBank Savings Account: Interest is calculated daily but usually credited monthly, allowing account holders to see their money grow steadily.

• Access Bank Savings Accounts: Some accounts pay monthly interest, while others pay quarterly depending on the amount deposited and the account type.

The benefit of monthly interest is that it compounds faster, meaning the money in the account grows over time. Customers who save regularly benefit from seeing tangible results on a monthly basis, compared to accounts that pay quarterly or yearly.

2. Digital Banks:

Online banks like Kuda, Opay, and PiggyVest also offer monthly interest or daily interest payouts, depending on the plan:

• Kuda Bank calculates interest daily and pays it monthly for certain savings accounts.

• Opay Savings Account offers interest on deposits with flexible payout schedules, often monthly.

• PiggyVest provides automated savings plans where interest is added periodically, making it convenient for tech-savvy users.

3. Key considerations:

When choosing a bank for monthly interest:

• Interest rate: Higher rates provide better returns. Digital banks often offer higher interest due to lower overhead costs.

• Crediting frequency: Monthly compounding is better than quarterly or yearly.

• Safety: Ensure the bank is regulated by the CBN and NDIC-insured.

• Flexibility: Some accounts allow partial withdrawals without losing accrued interest, which can be convenient.

In conclusion, banks that give interest every month include most Tier-1 banks like GTBank, Zenith Bank, Access Bank, UBA, and First Bank, as well as digital banks like Kuda and Opay.

Monthly interest is particularly attractive because it allows for faster compounding, making it a practical choice for customers who want consistent growth on their savings.

How much interest does Opay give?

Opay, a popular digital bank in Nigeria, offers a savings account product that pays interest to encourage users to save. The exact interest rate varies based on market conditions, regulatory policies, and the type of account.

As of recent updates, Opay typically offers an interest rate of around 5–6% per annum, which is credited monthly to users’ accounts.

Opay calculates interest based on the daily account balance, meaning the higher the balance maintained in the savings wallet, the higher the total interest earned over the month. This makes it ideal for users who want a combination of convenience, safety, and a decent return on their savings.

Key features of Opay interest accounts include:

1. Daily calculation, monthly payout: Interest is computed daily but added to the account monthly. This helps the savings grow steadily.

2. Flexible deposits and withdrawals: Users can deposit any amount and withdraw at any time without losing interest already earned.

3. No hidden fees: Unlike some traditional banks, Opay doesn’t deduct maintenance fees from savings accounts, making the interest effectively more valuable.

4. Digital convenience: Since Opay is mobile-first, users can monitor accrued interest in real-time through the app.

Comparison with traditional banks: While Opay offers around 5–6% per annum, traditional banks like GTBank or Zenith Bank may offer slightly lower rates on regular savings accounts (typically 3–4%). However, Tier-1 banks often provide additional services, like fixed deposit plans with higher interest rates, which may suit long-term savers.

In conclusion, Opay gives interest of approximately 5–6% per year, credited monthly, with flexible access and no hidden fees. Its digital-first approach, daily interest calculation, and transparent terms make it an attractive option for tech-savvy Nigerians who want regular growth on their savings.

Does the USA have a UBA bank?

Yes, the United Bank for Africa (UBA) does have a presence in the United States, but it is not a traditional consumer bank like those found in Nigeria.

UBA operates through its subsidiary, UBA USA, which primarily focuses on serving corporate clients, diaspora Nigerians, and businesses involved in Africa-related trade.

UBA’s expansion into the USA reflects its strategy to become a pan-African bank with global reach. The U.S. operations mainly cater to:

1. Corporate banking services: Providing financing, trade facilitation, and advisory services for companies doing business with Africa.

2. Diaspora services: Nigerians living in the USA can open accounts that facilitate easy remittances to family and business contacts back home.

3. Investment opportunities: Offering structured investment solutions for individuals and corporations interested in African markets.

Unlike mainstream banks like Chase or Bank of America, UBA USA focuses on niche markets rather than everyday retail banking for the general public. However, it does provide basic account services, foreign exchange, and remittance solutions to Nigerians and African clients in the U.S.

The presence of UBA in the U.S. is part of a larger strategy to connect Africa with international financial markets, making it easier for businesses to engage in cross-border trade. This approach has positioned UBA as one of the few African banks with a truly international footprint.

In conclusion, while UBA does operate in the United States, it primarily serves corporate clients, diaspora Nigerians, and businesses with African interests rather than offering widespread retail banking to the general American population. Its U.S. presence strengthens its global network and facilitates international banking transactions.

Which bank is the best in Nigeria?

Determining the best bank in Nigeria depends on the criteria being considered: stability, customer service, digital innovation, international reach, or profitability.

Based on overall performance, reputation, and customer trust, the Tier-1 banks, also known as FUGAZ — First Bank, UBA, GTCO, Access Bank, and Zenith Bank — consistently emerge as the top contenders.

1. Zenith Bank – Widely regarded as one of the strongest banks in Nigeria. Known for financial stability, excellent corporate banking services, and robust digital platforms. Zenith is particularly recommended for businesses and high-net-worth individuals.

2. GTCO (Guaranty Trust Bank) – Highly rated for digital banking innovation and ease of use. GTBank appeals to young professionals and tech-savvy customers, offering efficient online banking, automated savings, and fast transactions.

3. First Bank of Nigeria – The oldest bank in Nigeria with a long-standing reputation for reliability. It is ideal for customers who value trust, accessibility, and a wide branch network, making it suitable for both urban and rural areas.

4. UBA (United Bank for Africa) – Renowned for its international presence in over 20 African countries, as well as offices in the U.S., UK, and Europe. UBA is ideal for cross-border transactions, corporate banking, and serving the Nigerian diaspora.

5. Access Bank – Known for its large customer base and innovative services. Following the merger with Diamond Bank, Access Bank became the largest bank in Nigeria in terms of customer accounts, making it attractive for retail banking, savings, and loans.

Factors that make these banks the best in Nigeria include:

• Financial stability: Ability to withstand economic pressures and maintain liquidity.

• Customer service: Efficient operations and responsiveness to client needs.

• Digital innovation: Mobile apps, USSD banking, and online platforms for easy access.

• International reach: Ability to conduct cross-border transactions and support global clients.

• Reputation and regulatory compliance: Strict adherence to CBN regulations and NDIC insurance of deposits.

In conclusion, while the “best bank” can vary based on personal needs, Zenith Bank, GTCO, Access Bank, UBA, and First Bank consistently rank as the top banks in Nigeria due to their stability, innovation, customer trust, and international presence.

For most customers, these banks represent the safest and most reliable options for savings, investments, and business operations.

Who is the real owner of UBA Bank?

The United Bank for Africa (UBA) is a publicly listed company, meaning it is owned by shareholders rather than a single individual.

Its shares are traded on the Nigerian Stock Exchange (NSE), and ownership is distributed among institutional investors, corporate entities, and individual shareholders both within Nigeria and internationally.

Key points about UBA’s ownership:

1. Public Company Structure:
   UBA is a public limited company, which means its ownership is spread across many investors. Shareholders own portions of the bank according to the number of shares they hold, giving them rights to dividends and voting at annual general meetings.

2. Major Shareholders:
   While the bank is publicly owned, some institutional investors hold significant stakes. These include investment companies, pension funds, and foreign financial institutions. As a publicly listed bank, UBA is required to disclose its top shareholders in regulatory filings, ensuring transparency.

3. Founding Figures and Management Influence:
   UBA was founded in 1949 as the British and French Bank (BFB) and later became United Bank for Africa. One of the most notable figures associated with UBA’s growth is Tony Elumelu, a Nigerian entrepreneur and philanthropist. While he played a central role as Group Managing Director/CEO, driving UBA’s expansion across Africa and internationally, he does not own the bank outright. His influence is significant, but the actual ownership is held collectively by shareholders.

4. Regulatory Oversight:
   The Central Bank of Nigeria (CBN) oversees UBA’s operations, ensuring that the bank maintains sufficient capitalization, liquidity, and sound corporate governance. The Nigeria Deposit Insurance Corporation (NDIC) also ensures that depositors are protected. Regulatory oversight adds another layer of assurance to shareholders and customers, reinforcing that ownership is structured according to corporate and legal standards.

In summary:

The “real owner” of UBA Bank is not a single individual. It is a publicly held company owned by a combination of individual and institutional shareholders.

Key figures like Tony Elumelu may have a strong influence due to their leadership and strategic decisions, but legal ownership resides with the shareholders of UBA.

In conclusion, UBA’s ownership is distributed, transparent, and regulated, reflecting its status as one of Africa’s largest and most reputable banks. Customers and investors can trust that its operations are guided by both corporate governance principles and regulatory oversight.