Former Minister of Aviation, Osita Chidoka, has announced plans to open an account with Sterling Bank on Friday to reward its decision to abolish transfer fees, a move he describes as a stand against exploitative banking practices.
Sterling Bank, in a post on X (formerly Twitter) on Tuesday, declared: “That’s RIGHT! As of TODAY: Sterling Bank will NOT take any money for itself for: Mobile app, online – 100% FREE! Interbank transfers – ZERO FEES! ATM Card Issuance – 100% FREE! NIGERIANS ARE NO FOOLS! Enough is enough. No more quiet suffering.”
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The bank framed the decision as a response to rising financial pressures on Nigerians, urging other financial institutions to follow suit. The move comes amid growing concerns over excessive bank charges, which many Nigerians perceive as exploitative.
Mr Chidoka, in a statement on Thursday, praised the bank’s decision, noting that it had chosen people over profits by foregoing an estimated N13.56 billion in annual transfer charges—accounting for 4.13 per cent of its total revenue.
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“They walked away from N13.56 billion in transfer charges—4.13 per cent of their total revenue—to give Nigerians breathing room,” he said. “Other banks could, too—but they won’t.”
The former minister contrasted Sterling Bank’s move with the transfer fees retained by major financial institutions, highlighting that Zenith Bank, GTCO, UBA, and First Bank collectively earned N186 billion from such charges in 2024.
“For context, N186 billion is more than the combined federal allocation to six federal universities—UNN, ABU, UI, OAU, Unical, and Unilag—in the 2025 budget. It is also about 60 per cent of the entire budget of Yobe State,” Mr Chidoka said.
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He argued that removing transfer fees would hardly dent the revenues of major banks.
“GTCO: N15.47 billion from transfer charges—just 1.22 per cent of revenue. UBA: N48.36 billion—1.52 per cent. Zenith Bank: N80.05 billion—2.02 per cent. First Bank: N42.55 billion—1.41 per cent. These aren’t make-or-break figures for any of them. They’re just comfortable profits from charging ordinary Nigerians N10 to N50 per transfer—millions of times over,” he said.
Mr Chidoka’s call to action urged Nigerians to reassess their banking choices.
“If banks won’t change, we must change banks. If regulators won’t act, we must act with our wallets,” he said.
His initiative, which he dubbed #OpenSterlingAcct Day, seeks to encourage citizens to reward banks that eliminate unnecessary charges.
He also challenged other financial ⁸ to follow Sterling Bank’s lead, arguing that such charges represent a minor fraction of their overall earnings.
READ ALSO: High bank charges, insecurity top business challenges in December 2024
Sterling Bank’s decision has reignited online debate over the fairness of bank charges in Nigeria, with many calling on regulators, including the Central Bank of Nigeria, to intervene.
The ex-minister’s advocacy shows growing consumer discontent with the financial sector, as inflation and economic pressures continue to erode disposable income.
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