Apr 2, 2025

Sterling Bank Disrupts Industry Norms with Free Online Transfers When the news broke out on April 1, most people thought it was an April Fools prank but Sterling Bank confirmed it was no ruse and it was effective immediately. Sterling Bank has officially introduced a zero-transfer fee policy for all local online transactions conducted through its mobile app. This bold initiative positions Sterling as the first major traditional Nigerian bank to eliminate intra-bank and inter-bank transfer charges for its digital banking customers, setting a powerful new benchmark for customer-centric, values-driven banking in the country. “We believe access to your own money shouldn’t come with a penalty,” said Obinna Ukachukwu, Growth Executive at Sterling Bank. “This is more than a financial decision—it’s about redefining banking to put customers first.” A Relief Amid Rising Banking Costs With Nigerian bank customers increasingly burdened by multiple transaction-related charges—including N10–N50 transfer fees, stamp duties, VAT, and Electronic Money Transfer Levies (EMTL)—Sterling’s decision arrives as a welcome relief. For individuals and small businesses making frequent daily transfers, the zero-fee policy could translate into significant savings. Customers who use USSD codes are typically charged ₦6.98 per transfer, while ATM users now face updated charges after the Central Bank of Nigeria’s (CBN) February 2024 review. These include: ₦100 per ₦20,000 withdrawal at another bank’s ATM (on-site). Additional ₦500 surcharge at off-site ATMs (malls, airports, etc.). Removal of the previously allowed three free ATM withdrawals per month. Amid these rising fees, Sterling’s zero-transfer fee policy stands out as a truly customer-first gesture. More Than Just a Competitive Strategy Ukachukwu emphasized that the move wasn’t designed merely as a market differentiator, but as a statement of the bank’s core values: “We’re not yet the biggest bank in Nigeria, but we’ve been the boldest. Sterling fearlessly believes in the future of Nigeria, and this is us backing Nigerians with more than words.” Sterling has a history of taking principled stands. During the COVID-19 pandemic, it notably supported public healthcare workers with supplementary payments when few others did. The latest move further reinforces its reputation as a values-led, socially responsible financial institution. Public Response and Industry Implications Social media and online communities erupted in excitement following the announcement. Viral messages spread rapidly across WhatsApp, with users applauding the policy as “a blessing,” and calling on other banks to follow suit. Industry watchers believe the move may pressure Sterling’s competitors to rethink their pricing models, particularly in a market where digital adoption is growing and customer loyalty hinges on transparency, affordability, and innovation. History of Zero-fee transfers Many digital banks in Nigeria have been offering zero-fee or reduced-fee transfers for a while, well before Sterling Bank’s recent announcement. This was part of their entry strategy into the Nigerian Financial ecosystem and a key part of their value proposition to attract customers who are digitally savvy and cost-conscious. For example: Kuda offered a set number of free transfers per month (e.g., 25–30), then introduced small fees afterward. Opay and PalmPay offered completely free transfers and often ran promos to encourage usage. However several digital banks in Nigeria have adjusted their transfer fee policies in recent times:​ OPay: As of September 9, 2024, OPay implemented a ₦50 fee on electronic transfers of ₦10,000 and above. This change aligns with the Federal Inland Revenue Service (FIRS) regulations concerning the Electronic Money Transfer Levy (EMTL), which mandates a ₦50 levy on such transactions. OPay clarified that this fee is directed entirely to the federal government and not retained by the company. ​ Moniepoint: Similarly, Moniepoint introduced the same ₦50 fee for electronic transfers exceeding ₦10,000, effective from September 9, 2024, in compliance with the EMTL regulations. ​ Kuda Bank: Kuda offers customers 25 free transfers to other banks each month. After utilizing these free transfers, subsequent transfers to other banks incur a fee of ₦10 per transaction. Transfers between Kuda accounts remain free. ​ It’s important to note that these adjustments were primarily in response to regulatory requirements, such as the EMTL, rather than independent decisions by the digital banks. Traditional banks have also been subject to similar levies and fees as mandated by regulatory authorities. A Step Toward Ethical Banking Sterling’s zero-fee policy is part of a larger vision to promote ethical, transparent, and inclusive banking at scale. As inflation continues to challenge everyday Nigerians and operating costs rise, Sterling’s decision not only demonstrates leadership—but also trust in the long-term value of putting customers first. As Obinna Ukachukwu aptly put it: “We’re proud to lead this change. We hope it inspires others to think differently about what customers truly need—not just in services, but in values.” Could this be the tipping point that transforms Nigeria’s digital banking landscape? Time will tell. But one thing is clear—Sterling Bank has boldly taken the first step. Related