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E-mail:fprd@cbn.gov.ng FPR/DIR/GEN/CIR/ 06/017 April 21, 2017 Circular to all Banks, Other Financial Institutions and Mobile Payments Operators GUIDE TO CHARGES BY BANKS AND OTHER FINANCIAL INSTITUTIONS IN NIGERIA The Guide to Bank Charges issued in 2013 sought to reflect developments in the financial market, provide clarity on banking terms, and reduce ambiguity in loan transactions. However, the need to address the absence of a tariff regime for other financial institutions in Nigeria, enhance transparency in the operations of the Guide, and align the provisions to current realities, have necessitated further review of the Guide as clamoured by a broad spectrum of stakeholders. The review was expanded to incorporate the concerns of both operators and users of financial services in Nigeria.

The reviewed Guide provides for charges on various products and services that banks, other financial institutions and mobile payment operators offer to their customers. Banks, other financial institutions and mobile payments operators are required to present any other product, service and/or charge not covered by this Guide to the Central Bank of Nigeria for prior written approval.

"The Guide to Charges by Banks and Other Financial Institutions in Nigeria 2017" is hereby issued and takes effect from May 1, 2017. It replaces the Guide to Bank Charges that came into effect on April 1, 2013.

KEVIN N. AMUGO
DIRECTOR, FINANCIAL POLICY & REGULATION DEPARTMENT OF NIGE THE GUIDE TO CHARGES

BY
BANKS
AND
OTHER FINANCIAL INSTITUTIONS
IN NIGERIA
2017 Effective May 1, 2017

Preface

The "Guide to Charges by Banks and Other Financial Institutions" (the Guide) provides a basis for the application of charges on various products and services offered by banks and Other Financial Institutions (OFIs) in Nigeria to their customers. This document applies to banks and other financial institutions under the supervisory purview of the Central Bank of Nigeria (CBN). The charges prescribed in the Guide were arrived at after extensive consultation with stakeholders. The intendment of the Guide is to enhance flexibility, transparency and competition in the Nigerian banking industry.

Where a charge is stipulated as "negotiable", banks and OFIs are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means. Although the Guide provides for charges on various products and services of banks and OFIs, it is not exhaustive. Banks and OFIs are required to present any new product, service or charge not covered by this Guide to the Central Bank of Nigeria for prior written approval.

A glossary of terms is provided to define/explain the terminologies used in the Guide.

This Guide to Charges, which replaces the Guide to Bank Charges issued in 2013, takes effect from May 1, 2017, and may be reviewed from time to time to reflect changes in the business environment.

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		TABLE OF CONTENTS
PREFACE __________________________________________________________________________ 2
TABLE OF CONTENTS ________________________________________________________________ 3
PART 1: BANKS _____________________________________________________________________ 5
	SECTION 1: INTEREST ON DEPOSITS ___________________________________________________________ 6 SECTION 2: INTEREST RATES AND LENDING FEES ________________________________________________ 7 SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE ____________________________________________ 10 SECTION 4: COMMISSION ON BONDS GUARANTEES & INDEMNITIES, ETC. __________________________ 11 SECTION 5: FOREIGN EXCHANGE COMMISSION/CHARGES________________________________________ 12 SECTION 6: BILLS FOR COLLECTION___________________________________________________________ 13 SECTION 7: STRAIGHT FORWARD HANDLING OF DOCUMENTS ____________________________________ 14 SECTION 8: INWARD AND OUTWARD LETTERS OF CREDIT ________________________________________ 15 SECTION 9: INTERNAL TRANSACTIONS (WITHIN NIGERIA) ________________________________________ 17 SECTION 10: ELECTRONIC BANKING __________________________________________________________ 18 SECTION 11: MISCELLANEOUS ______________________________________________________________ 21
PART 2:		OTHER FINANCIAL INSTITUTIONS ____________________________________________ 24
PART 2 (A): MICRO‐FINANCE BANKS ___________________________________________________ 25
	SECTION 1: INTEREST ON DEPOSITS __________________________________________________________ 26 SECTION 2: INTEREST RATES AND LENDING FEES _______________________________________________ 27 SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE ____________________________________________ 30 SECTION 4: COMMISSION ON GUARANTEES & INDEMNITIES _____________________________________ 31 SECTION 5: INTERNAL TRANSACTIONS (WITHIN NIGERIA) ________________________________________ 32 SECTION 6: ELECTRONIC BANKING ___________________________________________________________ 33 SECTION 7: MISCELLANEOUS _______________________________________________________________ 35
PART 2 (B): PRIMARY MORTGAGE BANKS ______________________________________________ 37
	SECTION 1: INTEREST ON DEPOSITS __________________________________________________________ 38 SECTION 2: INTEREST RATES AND LENDING FEES _______________________________________________ 39 SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE ____________________________________________ 41 SECTION 4: ELECTRONIC BANKING ___________________________________________________________ 42 SECTION 5: MISCELLANEOUS _______________________________________________________________ 44Page 3 of 68

PART 2 (C): FINANCE COMPANIES_____________________________________________________		46
SECTION 1: INTEREST ON BORROWINGS ______________________________________________________ 4	7
SECTION 2: INTEREST RATES AND LENDING FEES _______________________________________________ 4	8
SECTION 3: MISCELLANEOUS _______________________________________________________________ 5	0
PART 3: MOBILE MONEY OPERATORS__________________________________________________		51
SECTION 1: AGENT‐INITIATED TRANSACTIONS _________________________________________________ 5	2
SECTION 2: SELF‐SERVICE, CUSTOMER INITIATED TRANSACTIONS _________________________________ 5	3
SECTION 3: OTHER TRANSACTIONS __________________________________________________________ 5	4
PART 4 - GLOSSARY ________________________________________________________________		55
PART 5 ‐ MINIMUM DISCLOSURE REQUIREMENTS IN OFFER LETTERS FOR CREDIT FACILITIES/LOAN	S60
GENERAL REQUIREMENTS__________________________________________________________________ 6	1
CONSUMER LOANS _______________________________________________________________________ 6	3
MORTGAGE LOANS _______________________________________________________________________ 6	5
OVERDRAFTS ____________________________________________________________________________ 6	7
MINIMUM DISCLOSURE REQUIREMENTS FOR CONTINGENT LIABILITIES ____________________________ 6	8

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Part 1: Banks

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Section 1: Interest On Deposits

	DESCRIPTION	RATE
1.1	Current account in credit	Negotiable
balance
1.2	Savings Account	Minimum of 30% of MPR p.a. (not applicable if a customer makes more than 4 withdrawals in a month)
1.3	Term Deposit Accounts	Negotiable
1.4	Domiciliary Accounts: 1.4.1 Current Accounts	Negotiable
1.4.2	Savings Accounts	Negotiable
1.5	Deposits held as collateral	Negotiable subject to minimum of 30% of MPR p.a.
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	DESCRIPTION	RATE
2.1	Interest Rate[1]: 2.1.1 Local Currency Loans	Negotiable (the rate should anchor MPR, reflecting the risk-based pricing model). Also, when the bank intends to introduce a new rate different from the agreed rate, the bank should notify the customer of the new rate at least 10 business days in advance of the application of the new rate.
2.1.2 Mortgage Financing	Negotiable subject to a maximum of MPR + 5%
2.1.3 Interest Rate - Foreign	Negotiable
currency Loans 2.1.4 Interest on authorized	Negotiable (the rate should anchor MPR, reflecting
OD	the risk-based pricing model). Also, when the bank intends to introduce a new rate different from the agreed rate, the bank should notify the customer of the new rate at least 10 business days in advance of the application of the new rate.
2.1.5 Unauthorized OD/Credit	Not permissible except as a result of facility repayment (where it occurs, Penal Rate as provided in Section 2.1.9 shall apply)
2.1.6 Drawing against	Negotiable (the rate should anchor MPR, reflecting
Uncleared Effects	the risk-based pricing model).
2.1.7 Equipment Leasing	Negotiable (the rate should anchor MPR, reflecting the risk-based pricing model). Also, when the bank intends to introduce a new rate different from the agreed rate, the bank should notify the customer of the new rate at least 10 business days in advance of the application of the new rate. Negotiable
2.1.8 Discountable instruments e.g. Usance bill, Bankers' Acceptance, Commercial Papers, Promissory Notes etc.	Page 7 of 68

	DESCRIPTION	RATE
2.1.9 Penal Rate1	Naira loans and advances: Maximum of 1% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals)
Penal rate is in respect of past due loans & advances, including excess over authorized OD/credit limit (which may arise from 2.1.5)	Foreign currency loans and advances: Maximum of 0.25% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals).
2.2	Lending Fees NB: Total lending fees shall not exceed 2 per cent	Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge).
2.2.1 Management fee2 covering processing, appraisal, ancillary and other related fees on a new loan application (one-off charge). 2.2.2 Facility Enhancement Fee	Negotiable subject to maximum of 1% of the additional amount disbursed (one off charge).
This fee applies when an additional amount is granted to a customer. Where this fee applies, management fee shall not apply. 2.2.3 Restructuring Fee (restructuring at the instance of customer)	Negotiable, subject to a maximum of 0.5% of the outstanding amount being restructured (one off charge).

1 Seven (7) days shall be allowed within which there will be no penal charge on late repayments. 2 Management fee is chargeable for all fresh requests and renewal of expired facilities. No charges for requests declined'

	DESCRIPTION	RATE
Management fee is not applicable in the case of a restructured facility 2.2.4 Commitment Fee	Negotiable, subject to a maximum of 1% on the undisbursed amount (one-off charge)
2.3	Charges for Consortium
Lending 2.3.1 Agency Fee	Negotiable
2.3.2 Management Fee	Negotiable subject to a maximum of 1% of principal amount (one–off charge)'
2.3.3 Commitment/NonDrawing Fee	Negotiable subject to a maximum of 0.5% of the undisbursed amount (one-off charge)
2.3.4 Commission charges for	Negotiable
underwriting services
2.4	Advisory/Consultancy fee	Negotiable (only applies where there is a written advisory/consultancy agreement between the bank and the customer)
2.5	Credit Reference Reports3	Cost recovery
2.6	Interbank Borrowing Rate: 2.6.1 Overnight /Call money	Negotiable
2.6.2 Tenured	Negotiable
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3 This is applicable to only customer-induced credit reference reports. For loans granted, this cost would be part of the management fee and therefore, the customer should not be charged. For credits not granted as a result of negative credit report, full cost recovery should be borne by the customer.

SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE

	DESCRIPTION	RATE Negotiable subject to a maximum of N1 per mille
3.1	Current Account Maintenance Fee (CAMF): Applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer's account in another bank. Note that CAMF is not applicable to Savings Accounts PAGE LEFT BLANK FROM THIS POINT

Section 4: Commission On Bonds Guarantees & Indemnities, Etc.

	DESCRIPTION	RATE
4.1	Bid bond/Tender Security/Bid	Negotiable subject to a maximum of 1% of the
Security	Bond value (one-off charge) Negotiable subject to a maximum of 1% of the Bond value (one-off charge)
4.2	Performance bond (chargeable from date of contingent liability)
4.3	Advance Payment Guarantee (APG)	Negotiable subject to a maximum of 1% of the APG value (one-off charge)
(chargeable from date of contingent liability)
4.4	Third-party Cheque	To be discouraged - However, negotiable for nonclearing financial institutions e.g. Micro-finance
Indemnities	banks,
4.5	Bank Guarantee	Negotiable subject to a maximum of 1% (one-off charge)
4.6	Other Bonds, Guarantees and	Negotiable subject to a maximum of 1% (one-off
Indemnities	charge)
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Section 5: Foreign Exchange Commission/Charges

	DESCRIPTION	RATE
	Purchases:
5.1	Purchases from CBN	As may be advised by the CBN.
5.2	Inter-bank purchases	As may be advised by the CBN No charge
5.3	Inward Telegraphic/SWIFT and other transfers expressed in foreign currency
5.4	Travelers Cheques	As may be advised by the CBN
5.5	Foreign Currency purchases	Interbank foreign exchange bid rate
from customers
	Sales:
5.6	Outward Telegraphic/SWIFT	Swift cost recovery, 0.5% commission on transfer
and other transfers	plus associated offshore bank charges (where applicable)
5.7	Foreign currency sales to	As may be advised by the CBN
customers	0.05% of transaction value or $10, whichever is lower
5.8	Commission on withdrawals from Domiciliary Accounts (whether savings or current account)
5.9	Foreign draft purchase	0.1% of the value of the cheque + Offshore charges
5.10	Collection Charge on	1% of cheque value or Naira equivalent of US $10
Cheques	whichever is lower
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Section 6: Bills For Collection

	DESCRIPTION	RATE
	Bills for collection (Inward)
6.1	Collection: 6.1.1 Commission on Bills for	Negotiable subject to a maximum of 0.5% of the bill
Collection	value
6.1.2 Postage (where	Actual cost of postage
applicable) 6.1.3 Communication	Actual cost of communication
charge (where applicable)	N5,000 per month
6.2	Holding charges after nonpayment, chargeable one month after due date	N3,000 plus cost of SWIFT
6.3	Extension charges for sight bills altered to tenured (usance) bills
6.4	Protest charges plus Notary	Cost of postage, (chargeable only where the
Public Fees	agreement specifies that the customer will pay)
	Bills for Collection (Outward)	Negotiable subject to a maximum of 0.5%
6.5	Collection commission: Commission on Bills for Collection
6.6	Bills for Collection -	Negotiable
Negotiation	PAGE LEFT BLANK FROM THIS POINT

SECTION 7: STRAIGHT FORWARD HANDLING OF DOCUMENTS

	DESCRIPTION	RATE
7.1	Export Documents Delivery	Negotiable subject to a maximum of N5,000 plus cost of courier
7.2	Import Documents: 7.2.1 Delivery	Negotiable subject to a maximum of N5,000 plus cost of courier
7.2.2 Bills for collection	Negotiable subject to a maximum of N5,000 plus
against acceptance	cost of courier
7.2.3 Bills for Collection	Cost of courier
against payment PAGE LEFT BLANK FROM THIS POINT

SECTION 8: INWARD AND OUTWARD LETTERS OF CREDIT
	DESCRIPTION	RATE
	Inward Letters of Credit (Export) N5,000 flat
8.1	Processing and Registration of Nigerian Export (NXP) Form
8.2	Advising Commission:	N5,000 flat
8.2.1 Where a Nigerian bank simply verifies authenticity of the Credit and delivers same.	0.05% of the value, subject to a minimum of Naira equivalent of US $25
8.2.2 Where a Nigerian bank has to rewrite the Credit at the instance of the customer
8.3	Commission on	Minimum of N5,000 subject to a maximum of 0.5% of
Confirmation of LC	the face value.
8.4	Letter of Credit - Negotiation	Negotiable
	Outward Letters of Credit (Import)
8.5	Purchase of Form A	N100 per form
8.6	Form M: 8.6.1 Processing	N3,000 in addition to maintenance fee on e-Form platform in line with CBN directive
8.6.2 Amendment	Negotiable subject to a maximum of N5,000
8.6.3 Revalidation/	Negotiable subject to a maximum of N5,000
Extensions
8.7	LC Establishment
Commission 8.7.1 For credits up to 180	1% of face value	Page 15 of 68

	DESCRIPTION	RATE
days 8.7.2 For credits up to 270	1.25% of face value
days	1.5% of face value
8.7.3 For credits up to 360 days (these charges are on the period of validity of the credit)
8.8	Renewal and extension in
the LC value: 8.8.1 Renewals	Commission on applicable LC establishment
8.8.2 Extensions	N5,000.00 flat
8.9	Increases or Enhancements	Additional establishment commission should be
in the LC value:	charged on the amount of any increase for the unexpired period of validity of credit (in line 8.7 above)
8.10	Amendment of LC at the	N2,000 per application
instance of the customer
8.11	Usance Bill under Credit
Guarantee Commissions: 8.11.1 Where the bill is less	N3 per mille per month
than one year 8.11.2 Where the bill	N5 per mille per month
exceeds one year
8.12	Pre-Arrival Assessment	N2,500 flat irrespective of payment mode
Report (PAAR)	PAGE LEFT BLANK FROM THIS POINT

Section 9: Internal Transactions (Within Nigeria)

	DESCRIPTION	RATE
9.1	Bank Drafts 9.1.1 Customer	Current Account: - N300 Savings Account: - N500
	9.1.2 Non-Customer	N500 + 0.1% of Draft value
9.2	Draft Repurchase	No charge N200 flat. However, banks are enjoined to undertake KYC on such customers.
9.3	Charge paid by nonaccount holders for initiating cash transactions (e.g. local money transfer, Prepaid Card loading), subject to maximum daily limit of N20,000
9.4	Cash handling charge	As may be advised by the CBN
9.5	Special Clearing of	Negotiable
	Cheques	(a)	Intra-bank N300 (One-off)
9.6	Standing Order Charge (InBranch) at the instance of the customer	(b)	Inter- bank N300 (one-off) plus applicable in
	Branch Electronic Funds Transfer charge
9.7	Direct Debit	As may be advised by CBN
9.8	Safe Custody	Negotiable
9.9	Stopped Cheques	N500 per order
9.10	Purchase/sale of Treasury	a. Processing fee - N100 flat
	Bills for customers	b. Custodian fee - in line with extant Guidelines on Custodianship on Money Market and Other Fixed Income Instruments (applicable on Treasury bills purchase) (c) Settlement of trade via S4 - Cost recovery Page 17 of 68

Section 10: Electronic Banking

	DESCRIPTION	RATE
10.1	Internet Banking: 10.1.1 Hardware Token	Cost recovery subject to a maximum charge of N3,500
	10.1.2 Software Token - One	No charge.
	Time Password (OTP)	However, where the OTP is sent to the customer via SMS, a charge of not more than N4/SMS shall apply
	10.1.3 Hardware Token	Cost recovery subject to a maximum of N3,500
	replacement	(Customer to bear cost only in the event of physical damage, loss of token or replacement after expiration) 0.75% of transaction value but not more than N1,200
	10.1.4 Bills Payment (Including Bills Payment through other E-channels)
10.2	Electronic Funds Transfer: 10.2.1 Below N10,000,000	N50
	10.2.2 N10,000,000 and	N50
	above 10.2.3 RTGS	N550
10.3	Card Maintenance Fee	$20 p.a. (or its equivalent)
	10.3.1 Foreign Currency Denominated debit/credit cards 10.3.2 Naira debit/credit	N50 monthly
	card
10.4	Credit Card Charges: 10.4.1 Issuance Fee	N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card) Page 18 of 68

	DESCRIPTION	RATE
10.4.2 Replacement fee (at customer's instance for lost or damaged cards)		N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
10.4.3 Renewal fee (upon		N1,000 (one-off charge). The same charge applies
expiry of existing cards)		irrespective of card type (i.e. regular or premium card)
10.4.4 Interest charges		Negotiable
10.5	Debit Card Charges: 10.5.1 Issuance Fee	N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
10.5.2 Replacement fee (at customer's instance for lost or damaged cards)		N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
10.5.3 Renewal fee (upon		N1,000 (one-off charge). The same charge applies
expiry of existing cards)		irrespective of card type (i.e. regular or premium card)
10.5.4 Prepaid card		No charge
loading/unloading
10.6	ATM Transactions: 10.6.1 On-us (withdrawal	No charge
from issuing bank's ATM)		N65 after the third withdrawal within the same month
10.6.2 Not on-us (withdrawal from other bank's ATM) in Nigeria.		Exact cost by international acquirer (cost recovery)
10.6.3 International withdrawals (per transaction) whether debit/credit card			Page 19 of 68

	DESCRIPTION	RATE
10.7	Merchant Service Commission (MSC):	Negotiable
	General Merchant (Including Domestic, International Travels and Entertainment)
10.8	Bulk Payments (e.g. Salaries,	Negotiable subject to a maximum of N50 per
	Dividends etc)	beneficiary payable by the sender
10.9	Transaction Alerts 10.9.1 SMS alert (Mandatory)	Not more than N4/SMS. (Fees on alerts are restricted to only customer-induced transactions). All associated notifications relating to a particular transaction should be consolidated into a single SMS alert.
	However, where a customer opts not to receive sms alert, the customer should issue an indemnity (for losses that may arise as a result) to the bank. 10.9.2 Email notification	No charge
10.10	PIN reissue	No charge
10.11	PIN reset	No charge Cost recovery
10.12	Use of Unstructured Supplementary Service Data (USSD)

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Section 11: Miscellaneous

	DESCRIPTION	RATE
11.1	Reactivation of accounts	No charge No charge
11.2	Closure of Account (savings, current, or domiciliary)
11.3	Insurance Premium paid	Exact Premium (customer to choose from a list of at
on behalf of customers	least 3 insurance companies to be recommended by the bank)
11.4	Issuance of statement of
account:	No charge
11.4.1 Mandatory monthly issuance of statement of account on current and savings accounts	Maximum of N20 per page
11.4.2 Special request for statement of account (request in a manner other than agreed on mandatory issuance)
11.5	Returned Cheques:	No charge
11.5.1 Due to reasons other than the account being unfunded 11.5.2 Due to the account	1% of amount or N5,000 whichever is higher (to be
being unfunded	borne by drawer only). This is without prejudice to the Dud Cheque Act
11.6	Business visit initiated by
customer: 11.6.1 Local	No charge

	DESCRIPTION	RATE
11.6.2 Foreign	Negotiable N500 per request
11.7	Status enquiry at the request of customer Define in glossary	No charge
11.8	Letter of Discharge for facilities repaid by customer
11.9	Verification of customers' documents with Government Agencies:	Cost recovery
11.9.1	Search at
Corporate Affairs Commission (CAC), land registry, legal search etc. 11.9.2 Obtaining Certified	Cost recovery
True Copy (CTC) 11.9.3 Perfection of	Cost recovery
security for credit facilities.	N500 plus Cost of Postage (if applicable)
11.10	Confirmation of overseas enquiries to correspondent bank at the instance of the customer	Negotiable
11.11	Intermediation fees for commercial papers (to be borne by the issuer)
11.12	Issuance of withdrawal	No charge
Booklet/Passbook
11.13	Customized deposit	Cost Recovery
booklet

	DESCRIPTION	RATE No charge
11.14	Over-the-counter cash withdrawals below the limit set by the CBN cash withdrawal/lodgment policy	No charge
11.15	Intra-bank cash Deposits/withdrawals within limits approved by the CBN
11.16	Cost of Cheque Books 11.16.1 Cheque Books	Cost recovery
11.16.2 Counter Cheque	N50 per leaflet
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PART 2: OTHER FINANCIAL INSTITUTIONS

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PART 2 (A): MICRO-FINANCE BANKS
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Section 1: Interest On Deposits

	DESCRIPTION	RATE
1.1	Current accounts	Negotiable
1.2	Savings accounts	Minimum of 30% of MPR p.a. (not applicable if a customer makes more than 4 withdrawals in a month)
1.3	Term Deposit Accounts	Negotiable
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	DESCRIPTION	RATE
	INTEREST RATES	Negotiable
2.1	Interest Rate on loans, authorized overdrafts and other advances/facilities1 Note that when there is a change in the agreed rate, the customer must be notified within 5 business days in advance of application of the new rate.
2.2	Unauthorized Overdraft	Not permissible except overdraft occasioned by loan and advances repayment and interest. Where this occurs, Penal Rate, as in 2.5 below, shall apply
2.3	Drawing against Uncleared	Negotiable
	Effects	Negotiable
2.4	Micro Leasing/Microfinancerelated Hire purchase	Maximum of 1% flat per month on unpaid amount in addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals)
2.5	Penal rate2 for late repayment of loans, authorized overdrafts, micro leases, microfinance-related hire purchase and other advances/facilities, including unauthorized overdraft as in 2.2 above.
	Lending Fees	Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge).
2.6	Management fee3 covering processing, appraisal, ancillary and other related
1 Three (3) days from the date of execution, shall be allowed within which the contract may be rescinded

1 Three (3) days from the date of execution, shall be allowed within which the contract may be rescinded provided no draw down has been made 2 Three (3) days shall be allowed within which there will be no penal charge on late repayments.

3 Management fee is chargeable for all fresh requests and renewals of expired facilities. No charges for requests declined'

	DESCRIPTION	RATE
fees on a new loan application (one-off charge).
2.7	Facility Enhancement Fee	Negotiable subject to maximum of 1% of the additional amount disbursed (one off charge). Where this fee applies, management fee shall not apply.
2.8	Restructuring Fee (Restructuring at the instance of customer)	Negotiable, subject to a maximum of 0.50% on the outstanding amount being restructured (one off charge).
Management fee is not applicable in the case of a restructured facility	Negotiable, subject to a maximum of 1% of the undisbursed amount (one-off charge)
2.9	Commitment Fee: A fee charged by a financial institution for an undisbursed facility in order to keep the line of credit open
2.10	Advisory/Consultancy fee	Negotiable. But only applies where there is a written advisory/consultancy agreement between the bank and the customer
2.11	Credit Reference Reports4	Cost recovery
2.12	Charges for Consortium
Lending
	2.12.1 Agency Fee	Negotiable
	2.12.2 Management Fee	Negotiable subject to a maximum of 1% of principal amount (One–off charge)'
	2.12.3 Commitment/NonDrawing Fee	Negotiable subject to a maximum of 0.5% of the undisbursed amount (one-off charge)

4 This is applicable to only customer-induced credit reference reports. For loans granted, this cost would be part of the management fee and therefore, the customer should not be charged. For credits not granted as a result of negative credit report, full cost recovery should be borne by the customer.

	DESCRIPTION	RATE
2.12.4 Commission charges	Negotiable
for underwriting services PAGE LEFT BLANK FROM THIS POINT

SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE

	DESCRIPTION	RATE
3.1	Current Account Maintenance fee:	Negotiable subject to a maximum of N1 per mille
Current Account Maintenance Fee - applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer's account in another bank. Note that CAMF is not applicable to Savings Accounts PAGE LEFT BLANK FROM THIS POINT

Section 4: Commission On Guarantees & Indemnities

	DESCRIPTION	RATE
4.1	Advance Payment	Negotiable subject to a maximum of 1% of the APG
Guarantee (APG)	value (one-off charge)
4.2	Guarantees and Indemnities	Negotiable subject to a maximum of 1% (one-off charge)
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Section 5: Internal Transactions (Within Nigeria)

	DESCRIPTION	RATE
5.1	Bank Drafts
	5.1.1 Customer	N350
	5.1.2 Non-Customer	N550
5.2	Draft Repurchase	No charge Correspondent bank's charge plus N50
5.3	Charges paid by non-account holders for initiating cash transactions (e.g. local money transfer, Prepaid Card loading). This is subject to a maximum daily limit of N20,000
5.4	Cash handling charge	As may be advised by CBN
5.5	Special clearing of cheques	Negotiable
5.6	Standing Order Charge (InBranch) at the instance of the customer
	5.6.1 Intra-bank	N300 (One-off)
5.6.2 Inter- bank	N300 (one-off) plus recurring external transfer cost applicable (correspondent bank charge)
5.7	Direct Debit	Correspondent bank's charge plus N50
5.8	Safe Custody	Negotiable
5.9	Stopped cheques	N500 per order
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Section 6: Electronic Banking

	DESCRIPTION	RATE
6.1	Internet Banking Token:
	6.1.1 Hardware Token	Cost recovery subject to a maximum charge of N4,000
6.1.2 Software Token (OTP)	No charge. However, where the OTP is sent to the customer via SMS, a charge not more than N4/SMS shall apply in respect of the sms
6.1.3 Hardware Token	Cost recovery subject to a maximum of N4,000
Replacement	(Customer to bear cost only in the event of physical damage, loss of token or replacement after expiration)
6.2	Transfers within Nigeria: 6.2.1 Intra-bank	No charge
6.2.2 Inter-bank	Correspondent bank's charge plus N50
6.2.3 Transfers to non-account holders, subject to Tiered-KYC requirements	Correspondent bank's charge plus N50
6.3	Electronic Funds Transfer (on
customer's Electronic Device):
	6.3.1 Below N10,000,000	N60 per transaction
	6.3.2 N10,000,000 and above
	6.3.3 Bills Payment	Negotiable subject to a maximum of the lower of 0.75% of transaction amount or N1,200 (Biller/Merchant to pay)
6.3.4 Usage of USSD Code for	Cost recovery
transactions
6.4	Naira Debit Card Charges: 6.4.1 Issuance Fee	N1,000 (one-off charge. The same charge applies irrespective of card type (i.e. regular or premium card)
	6.4.2 Replacement Fee (at customer's instance for lost or damaged cards cards)	N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
	Page 33 of 68

	DESCRIPTION	RATE
	6.4.3 Renewal Fee (upon expiry	N1,000 (one-off charge). The same charge applies
of existing cards)	irrespective of card type (i.e. regular or premium card)
6.4.4 ATM Bill Payment	N100
6.4.5 Debit card maintenance	N50/Month, applicable only to month card is used
charges 6.4.6 Prepaid card	No charge
loading/unloading
6.5	ATM Transactions:
	No charge
6.5.1 On-us (withdrawal from issuing bank's ATM)
	6.5.2 Not on-us (withdrawal from	N65 after the third withdrawal within the same
other bank's ATM)	month
6.5.3 On approved	No charge
Independent ATMs
6.6	Negotiable
Merchant Service Commission (MSC)
	General Merchant (Including Domestic, International Travels and Entertainment)
6.7	Bulk Payments (e.g. Salaries,	Negotiable subject to a maximum of N50 per
Dividends etc):	beneficiary payable by the sender
6.8	Transaction Alert
	6.8.1 SMS alert (Mandatory)
	Not more than N4/SMS (fees on alerts are restricted to only customer-induced transactions). All associated notifications relating to a particular transaction should be consolidated into a single SMS alert
However, where a customer opts not to receive sms alert, the customer should issue an indemnity (for losses that may arise as a result) to the bank. 6.8.2 Email notification	No charge
	PAGE LEFT BLANK FROM THIS POINT	Page 34 of 68

	SECTION 7: MISCELLANEOUS
	DESCRIPTION	RATE
7.1	PIN reissue	N100
7.2	PIN reset	No charge
7.3	Reactivation of accounts	No charge
7.4	Closure of Accounts	No charge
7.5	Insurance Premium paid on	Exact Premium (customer to choose from a list of at
behalf of customers	least 3 insurance companies to be recommended by the bank)
7.6	Issuance of statement of
account:	No charge
7.6.1 Mandatory monthly issuance of statement of account on current and savings accounts. MFB and customer should agree on mode of transmission of statement (pick options from uniform account opening form)	Maximum of N20 per page
7.6.2 Special request for statement of account (request in a manner other than agreed on mandatory issuance)
7.7	Business Visit	No charge N500 per request
7.8	Status enquiry at the request of customer (e.g. Confirmation Letter, Embassy Letter, Reference Letter, Letter of Indebtedness/Nonindebtedness etc.)
7.9	Verification of customers'
documents with Government	Page 35 of 68

	DESCRIPTION	RATE
	Agencies:
	Cost recovery
7.9.1	Search at Corporate
Affairs Commission (CAC), land registry, Legal Search, etc.
	7.9.2	Obtaining Certified True	Cost recovery
Copy (CTC)	Cost recovery
7.9.3	Perfection of security for
credit facilities, Deed of Assignment, Deed of Release etc.
7.10	Issuance of withdrawal	No charge
Booklet/Passbook
7.11	Customized deposit booklet	Cost Recovery No charge
7.12	Over-the-counter cash withdrawals below the limit set by the CBN cash withdrawal/lodgment policy	No charge
7.13	Intra-bank cash Deposits/withdrawals within limits approved by the CBN
7.14	Cost of Cheque Books: 7.14.1 Cheque Books	Cost recovery
7.14.2 Counter Cheque	N50 per leaflet
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PART 2 (B): PRIMARY MORTGAGE BANKS
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Section 1: Interest On Deposits

	DESCRIPTION	RATE
1.1	Current accounts (Mortgagefocused)	Negotiable
1.2	Savings accounts	Minimum of 30% of MPR p.a. (not applicable if a customer makes more than 4 withdrawals in a month)
1.3	Term Deposit Accounts	Negotiable
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	DESCRIPTION	RATE
2.1	Interest Rate on: 2.1.1 NHF Loan	6% per annum as prescribed for NHF loans (No additional interest is allowed). Note that the 6% is shared as follows: Contributors: 2% FMBN: 2% PMB: 2%
	2.1.2 Real Estate Construction	Negotiable
	Finance 2.1.3 Mortgage Finance	Negotiable subject to a maximum of MPR + 5%
2.2	Lending Fees	Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge).
	2.2.1 Management fee1 covering processing, appraisal, ancillary and other related fees on a new loan application (oneoff charge). 2.2.2 Facility Enhancement Fee	Negotiable subject to maximum of 1% of the additional amount disbursed (one off charge).
	Where this fee applies, management fee shall not apply 2.2.3 Restructuring Fee (Restructuring at the instance of customer)	Negotiable, subject to a maximum of 0.50% on the outstanding amount being restructured (one off charge).
	Where restructuring fee applies, management fee shall not apply)

1 Management fee is Chargeable for all fresh requests and renewals of expired facilities. No charges for requests declined'

	DESCRIPTION	RATE
	2.2.4 Penal Rate for late	Maximum of 1% flat per month on unpaid amount in
	repayment of loans2	addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals) Negotiable, subject to a maximum of 1% of the undisbursed amount (one-off charge)
	2.2.5 Commitment Fee: A fee charged by a financial institution for an undisbursed facility in order to keep the line of credit open 2.2.6 Advisory/Consultancy fee	Negotiable (only applies where there is a written advisory/consultancy agreement between the bank and the customer)
2.3	Credit Reference Reports3	Cost recovery
2.4	Charges for Consortium Lending 2.4.1 Agency Fee	Negotiable
	2.4.2 Management Fee	Negotiable subject to a maximum of 1% of principal amount (one–off charge)'
	2.4.3 Commitment/Non-Drawing	Negotiable subject to a maximum of 0.5% of the
	Fee	undisbursed amount
	2.4.4 Commission charges for	Negotiable
	underwriting services PAGE LEFT BLANK FROM THIS POINT

2 Seven (7) days shall be allowed within which there will be no penal charge on late repayments. 3 This is applicable to only customer-induced credit reference reports. For loans granted, this cost would be part of the management fee and therefore, the customer should not be charged. For credits not granted as a result of negative credit report, full cost recovery should be borne by the customer.
SECTION 3: CURRENT ACCOUNT MAINTENANCE FEE

	DESCRIPTION	RATE Negotiable subject to a maximum of N1 per mille
3.1	Current Account Maintenance Fee (CAMF): Applicable to current accounts ONLY in respect of customerinduced debit transactions to third parties and debit transfers/lodgments to the customer's account in another bank. Note that CAMF is not applicable to Savings Accounts PAGE LEFT BLANK FROM THIS POINT

Section 4: Electronic Banking

	DESCRIPTION	RATE
4.1	Internet Banking: 4.1.1 Hardware Token	Cost recovery subject to a maximum charge of N3,500
4.1.2 Software Token - One Time	No charge. However, where the OTP is sent to the
Password (OTP)	customer via SMS, a charge of not more than N4/SMS shall apply
4.1.3 Hardware Token	Cost recovery subject to a maximum of N3,500
replacement	(Customer to bear cost only in the event of physical damage, loss of token or replacement after expiration) N100
4.1.4 Bills Payment (Including Bills Payment through other Echannels)
4.2	Electronic Funds Transfer: 4.2.1 Below N10,000,000	N50 per transaction
4.2.2 N10,000,000 and above 4.2.3 RTGS	N550
4.3	Naira Annual debit/credit Card	N50 per month
Maintenance Fee
4.4	Credit Card Charges: 4.4.1 Interest charges	Negotiable
4.4.2 International withdrawals	Exact cost by international acquirer (Cost Recovery)
(per transaction)
4.5	Debit Card Charges: 4.5.1 Issuance Fee	N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
4.5.2 Replacement Fee (at customer's instance for lost or damaged cards)	N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card)
4.5.3 Renewal Fee (upon expiry	N1,000 (one-off charge). The same charge applies
of existing cards)	irrespective of card type (i.e. regular or premium card) Page 42 of 68

	DESCRIPTION	RATE
4.5.4 International withdrawals	Exact cost by international acquirer (Cost Recovery)
(per transaction) 4.5.5 Prepaid card	No charge
loading/unloading
4.6	ATM Transactions: 4.6.1 On-us (withdrawal from	No charge
issuing bank's ATM) 4.6.2 Not on-us (withdrawal from	N65 after the third withdrawal within the same
other bank's ATM)	month Negotiable
4.7	Merchant Service Commission (MSC): General Merchant (Including Domestic, International travels and Entertainment)
4.8	Bulk Payments (e.g. Salaries,	Negotiable subject to a maximum of N50 per
Dividends etc.):	beneficiary payable by the sender
4.9	Transaction Alert 4.9.1 Mandatory SMS alert.	Not more N4/SMS. (Fees on alerts are restricted to only customer-induced transactions). All associated notifications relating to a particular transaction should be consolidated into a single SMS alert.
(Where a customer opts not to receive sms alert, the customer should indemnify the bank against any loss that may result from the customer's decision not to receive sms alert). 4.9.2 Email notification	No charge
4.10	PIN reissue	No charge
4.11	PIN reset	No charge Cost recovery
4.12	Use of Unstructured Supplementary Service Data (USSD) PAGE LEFT BLANK FROM THIS POINT

	SECTION 5: MISCELLANEOUS
	DESCRIPTION	RATE
5.1	Reactivation of accounts	No charge
5.2	Closure of Accounts	No charge
5.3	Insurance Premium paid on	Exact Premium
behalf of customers	(Customer to choose from a list of at least 3 insurance companies to be recommended by the bank)
5.4	Issuance of statement of
account:	No charge
5.4.1 Mandatory monthly issuance of statement of account on current and savings accounts. PMB and customer should agree on mode of transmission of statement (pick options from uniform account opening form)	Maximum of N50 per page
5.4.2 Special request for statement of account (request in a manner other than agreed on mandatory issuance)
5.5	Reimbursement for business visit	No charge N500 per request.
5.6	Status enquiry at the request of customer (e.g. Confirmation Letter, Embassy Letter, Reference Letter, Letter of Indebtedness/Nonindebtedness etc.)
5.7	Verification of customers' documents with Government Agencies:

	DESCRIPTION	RATE Cost recovery
5.7.1 Search at Corporate Affairs Commission (CAC), land registry, Legal Search, etc. 5.7.2 Obtaining Certified True	Cost recovery
Copy (CTC)	Cost recovery
5.7.3	Perfection of security for
credit facilities, Deed of Assignment, Deed of Release etc.
5.8	Issuance of withdrawal	Cost recovery
Booklet/Passbook
5.9	Customized deposit booklet	Negotiable No charge
5.10	Over-the-counter cash withdrawals below the limit set by the CBN cash withdrawal/lodgment policy	No charge
5.11	Intra-bank cash Deposits/withdrawals within CBN approved limits
5.12	Minimum amount for opening	Subject to the CBN three-tiered KYC requirements
accounts
5.13	Cost of Cheque Books: Cheque Books	Cost recovery
Counter Cheque	N100 per leaflet
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Part 2 (C): Finance Companies

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SECTION 1: INTEREST ON BORROWINGS

	DESCRIPTION	RATE
1.1	Borrowings	Negotiable
	PAGE LEFT BLANK FROM THIS POINT

	DESCRIPTION	RATE
2.1	Interest Rate on Loans and	Negotiable
	Advances
2.2	Lending Fees	Negotiable subject to maximum of 1% of the principal amount disbursed (one off charge).
	2.2.1 Management fee1 covering processing, appraisal, ancillary and other related fees on a new loan application (oneoff charge). 2.2.2 Facility Enhancement Fee	Negotiable subject to maximum of 1% of the additional amount disbursed (one off charge).
	(Where enhancement fee applies, management fee shall not apply) 2.2.3 Restructuring Fee (For restructuring at the instance of customer)	Negotiable, subject to a maximum of 0.5% on the outstanding amount being restructured (one off charge).
	Where restructuring fee applies, management fee shall not apply) 2.2.4 Penal Rate for late	Maximum of 1% flat per month on unpaid amount in
	repayment of loans	addition to charging current rate of interest on outstanding debt (without prejudice to the provisions of the Prudential Guidelines on the limitation of accruals)
	2.2.5 Commitment Fee	Negotiable, subject to a maximum of 1% of the Undisbursed amount (one-off charge)
2.3	Advisory/Consultancy fee	Negotiable. The fee only applies where there is a written advisory/consultancy agreement between the finance company and the customer
	1 Management fee is chargeable on all fresh requests and renewals of expired facilities. No charges for

	DESCRIPTION	RATE
2.4	Credit Reference Reports2	Cost recovery
2.5	Charges for Consortium Lending 2.5.1 Agency Fee	Negotiable
	2.5.2 Management Fee	Negotiable subject to a maximum of 1% of principal amount (one-off charge)
	2.5.3 Commitment/Non-Drawing	Negotiable subject to a maximum of 1% of the
	Fee	undisbursed amount
	2.5.4 Commission charges for	Negotiable
	underwriting services PAGE LEFT BLANK FROM THIS POINT

2 This is applicable to only customer-induced credit reference reports. For loans granted, this cost would be part of the management fee and therefore, the customer should not be charged. For credits not granted as a result of negative credit report, full cost recovery should be borne by the customer.

Section 3: Miscellaneous

	DESCRIPTION	RATE
3.1	Insurance Premium paid on	Exact Premium
	behalf of customers	(Customer to choose from a list of at least 3 Insurance Companies to be recommended by the bank)
3.2	Business visit	No charge
3.3
	Verification of customers' documents with Government Agencies:
	Cost recovery
	3.3.1 Search at Corporate Affairs Commission (CAC), land registry, Legal Search, etc.
	3.3.2	Obtaining Certified True	Cost recovery
	Copy (CTC)	Cost recovery
	3.3.3	Perfection of security for
	credit facilities, Deed of Assignment, Deed of Release, etc. PAGE LEFT BLANK FROM THIS POINT

PART 3: MOBILE MONEY OPERATORS
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Section 1: Agent-Initiated Transactions

	MOBILE PAYMENT	RATE
TRANSACTION/REQUEST
1.1	Cash-in (Deposit into Mobile
Money Operator Wallet)
	1.1.1 On-Us Agent (borne by	N100
customer)
	1.1.2 Off-Us Agent (borne by	Minimum of N50 subject to 1.5% of transaction value
customer)	or N500, whichever is lower
1.2	Intra-Scheme Money Transfer
	1.2.1 Sending to Account Holder	Minimum of N50 subject to 1% of transaction value or N300, whichever is lower
	1.2.2 Sending to Non-Account	Minimum of N50 subject to 1.5% of transaction value
Holder	or N500, whichever is lower Minimum of N50 subject to 1.5% of transaction value or N500, whichever is lower
1.3	Inter-Scheme Money Transfer (from one mobile money operator to another mobile money operator or financial institution)
1.4	Bill Payment	N100
1.5	Cash-out	No charge
1.6	Account Opening	No charge
1.7	BVN Verification	Cost recovery
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Section 2: Self-Service, Customer Initiated Transactions

MOBILE PAYMENT CUSTOMER	RATE
TRANSACTION/REQUEST
2.1	N20
Cash-in (Deposit into MPO Wallet)
	Customer Initiated Direct Debit from Bank Account
2.2	Intra-Scheme Money Transfer
	2.2.1 To Account Holder	N100
	2.2.2 To Non-Account Holder	Minimum of N50 subject to 1.5% of transaction value or N500, whichever is lower N100
2.3	Inter-Scheme Money Transfer (from one mobile money operator to another mobile money operator or financial institution)
2.4	Bill Payment	N100
2.5	Cash-out (to be borne by	Minimum of N50 subject to 1% of transaction value
sender)	or N500, whichever is lower
2.6	Account Opening	No charge
2.7	Bulk Payments
	2.7.1 To Account Holder	Minimum of N100 subject to 1% of transaction value or N300, whichever is lower
2.7.2 To Non-Account Holder	Minimum of N150 subject to 1% of transaction value or N500, whichever is lower
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Section 3: Other Transactions

MOBILE PAYMENT CUSTOMER	RATE
TRANSACTION/REQUEST
3.1	Hardware Token	N3,500 (one- off)
3.2	Software Token	No charge. However, where the OTP is sent to the customer via SMS, a charge of not more than N4/SMS shall apply
3.3	Mobile Payment Card Issuance	N1,000
fee	N1,000
3.4	Mobile Payment Card Renewal fee (upon expiry of existing card)	N1,000
3.5	Mobile Payment Card Replacement fee (at customer's instance for lost or damaged cards)
3.6	SMS Alerts	Cost recovery
3.7	PIN reissue	No charge
3.8	PIN reset	No charge Cost recovery
3.9	Use of Unstructured Supplementary Service Data (USSD)
3.10	Monthly issuance of statement	No charge
of account
3.11	Special request for statement of	N200
account	PAGE LEFT BLANK FROM THIS POINT

Part 4 - Glossary

TERMS	DEFINITION
Advance	Payment	An irrevocable commitment by a bank on behalf of its customer to
Guarantee	secure upfront payments made to the customer by a third party or principal for a contract awarded to the customer in line with the terms of the contract.
Advising Commission	This is a commission earned by a bank for verifying the authenticity of a letter of credit and for delivering same to the beneficiary. Usually, the bank that performs this function is based in the exporter's country and is called the Advising bank.
Advisory/Consultancy fees	Fees charged by financial institutions where there is an agreement for advisory/consultancy services.
Agency Fee	Money paid to a member of the syndicate in a consortium/syndicated lending arrangement for acting as agent of other members of the syndicate.
Amendment Fee	Fee charged for modifying the terms of a letter of credit/Form M at the instance of the applicant.
Bank Guarantee	An irrevocable undertaking of a bank that the liabilities of a debtor (e.g. the bank's customer) would be met.
Bankers' Acceptance (BA)	BA is a promissory note which is drawn on and accepted by a bank. It specifies the amount, the date, and the person to which the payment is to be made.
Bid bond/Tender Security/Bid	This is a guarantee issued by a third party, usually a bank, to a principal
Security	(the client) on behalf of a contractor (a bank's customer) that the contractor has the financial capacity to execute the contract.
Bills for Collection	A payment mode for International Trade where transaction documents are sent by the seller's bank to the buyer's bank against which payment or acceptance are made by the buyer, before shipping documents are released. In a Bill for Collection Against Acceptance, a bank releases document to the buyer on acceptance of the bills of exchange/draft while in a Bill for Collection against Payment, the bank releases documents to the buyer upon payment.

TERMS	DEFINITION
Bills Payment	A process of e-banking used by financial institutions to collect payments for utilities (such as public utility, cable subscriptions, etc.) on behalf of their customers.
Bulk payment	This involves payment to multiple beneficiaries.
Card Issuance fee	Fee charged by bank for issuance of a plastic payment card (such as debit/credit prepaid cards) that allows a cardholder access to his/her bank account.
Cheque	A negotiable instrument drawn on a bank to pay a specific amount of money to a named beneficiary upon demand or specified date. Examples include Bills of exchange, drafts etc.
Collection	Charge	on	Fee charged by a bank for collection of proceeds of foreign cheques
Cheques	on behalf of their customers.
Commercial Papers	A commercial Paper is a short term debt financing instrument issued by a company which can be readily traded. Such instruments may or may not carry a bank's guarantee.
Commitment Fees	A fee charged by a financial institution for an unused credit line in order to keep the line of credit open.
Commission on Confirmation	This is a commission charged by a bank for verifying the authenticity of
of LC	an LC and for adding its name to the LC. Confirmation is normally added at the request of the Issuing Bank.
Confirming Bank	It is the bank that adds its confirmation to a credit upon the issuing bank's authorization or request
Consortium Lending	Consortium lending is a type of financing arrangement in which two or more banks come together to jointly finance a single borrower.
Contingent Liability	A contingent liability is an obligation that may arise upon the occurrence of specified condition(s) as indicated in a contract.
Counter Cheque	This is a blank cheque provided to a customer whose cheque is not available at the point of withdrawal from the current account.
Credit Reference Report	A credit reference report provides a snapshot of a borrower's credit accounts and repayment record. It is generally used to determine the creditworthiness of the borrower.

TERMS		DEFINITION
Current Account	This is a monthly fee chargeable on current accounts based on the level
Maintenance Fee (CAMF)	of customer-induced debit transactions that occurred in the account during the month. This fee is not applicable to all bank-induced debits and customer-induced transfers to other accounts in the same name and in the same bank.
Discountable Instruments	These are money market instruments that are issued at less than their face value and are redeemed at their face value upon maturity.
Domiciliary Account	Domiciliary Account is a bank account denominated in foreign currency and can be current or savings account.
Equipment Leasing	An arrangement through which the owner of an equipment (lessor, e.g. a bank) conveys the right to use the equipment to another party (the lessee, e.g. a bank's customer) for a specified period of time (the lease term) and for specified periodic payments (lease rental).
Establishment Commission	A commission charged by a bank for initiating a letter of credit on behalf of a customer.
Facility Enhancement Fee	This is a fee charged where there is an agreement for additional amount to be extended to a customer within the same tenor as an existing facility.
Facility Restructuring fee	Facility Restructuring Fee is a fee charged where there is an agreement to change the terms and conditions of an existing facility. This will usually apply when there is need to renegotiate a facility.
FPRD	Financial Policy and Regulation Department - A department in the CBN.
Indemnities	An undertaking given to compensate for (or to provide protection against) loss, incurred penalty or from a contingent liability.
Letter of Credit	A written undertaking by a bank on behalf of the importer (buyer) to pay specified sum in specified currency, provided the exporter (seller) meets specified condition and submit the prescribed documents within a fixed timeframe.
Letters of Credit Expiry Date	The last day the beneficiary of a letter of credit (usually the exporter) should fulfil the terms of the credit, failing which (and in the absence of an extension or renewal) the letter of credit becomes invalid.

TERMS	DEFINITION
Management Fee	This is a fee charged by a bank for processing an application for a facility and for the general administration of the facility over its lifetime. It is chargeable only once in the life of a facility.
MPR (Monetary Policy Rate)	This is the policy rate set by the Monetary Policy Committee to anchor interest rate direction in the economy.
Negotiable	This refers to a rate that is open to discussion between a financial institution and its customer.
Negotiation of Documents	Negotiation means the giving of value for draft(s) and/or document(s) by the bank authorized to negotiate. Mere examination of the documents without giving value does not constitute a negotiation.
NHF Loan	National Housing Fund Loan.
One-Off	This refers to fees/obligations that are non-recurring i.e. payable only once during the tenor of a facility.
OD (Overdraft)	This is a loan arrangement where a bank allows a current account customer to make withdrawals above the balance in the account up to a certain limit.
Past Due	Bill or loan that has not been paid on the maturity date/due date.
Penal Rate	This is the interest rate that financial institutions charge customers for failing to make payments on loans and advances as at when due. It is charged in addition to the agreed interest rate(s).
Perfection of Security	This is the process of registering a financial institution's interest in an asset held as collateral with the appropriate statutory authority so that it is made legally enforceable in the event of default.
Performance Bond	This is a guarantee issued by a third party, usually a bank, to a principal (the client) on behalf of a contractor (a bank's customer) against failure of the contractor to meet obligations specified in the contract.
Revalidation of Documents	Official approval or confirmation of a document after a change has been effected on the same document.
Sight bill	This is a bill of exchange which is payable on presentation to the drawee i.e. on demand.

TERMS	DEFINITION
SWIFT	Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network to allow financial and non-financial institutions (e.g. corporates) to transfer financial transactions through a 'financial message'
Third Party Cheque Indemnities	A written undertaking by a third party (such as a bank), on behalf of one of the parties (the first party) to a transaction or contract, to cover the other party (the second party) against specific loss or damage arising from dishonouring the cheque of the first party.
Usance Bill	This is a bill of exchange which allows the drawee have a period of credit. The term can begin from the date of the bill of lading or from the date of acceptance by the drawee and is stated in days or months.
	PAGE LEFT BLANK FROM THIS POINT

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PART 5 - MINIMUM DISCLOSURE REQUIREMENTS IN
OFFER LETTERS FOR CREDIT FACILITIES/LOANS
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General Requirements

S/N 1	Name of borrower	This includes the name of the borrower.
2	Contact details of the borrower	This should clearly state the address (location), telephone number, email, etc. of the borrower.
3	Credit type	This states the type of facility approved for the borrower.
4	Purpose of the credit	This states the reason for which the facility is granted.
5	Amount	This is the amount approved for the facility.
6	Collateral	The bank should disclose the asset pledged by the borrower as security for the facility (e.g. shares, landed property, cash, etc.).
7	Loan tenor	This spells out the approved duration for the facility.
8	Interest rate	This is the annual interest rate to be charged by the bank on the amount outstanding (except for overdrafts).
9	Variable rate information	This	should	clearly	state	the	possibility	of
		changes in rates in line with money market conditions. It should include notification and time lines for concurrence by customers to the changes. The new rates (both increase and decrease) can only apply 10 days after the notification. The variable rate information should also outline the bank's responsibilities in the event of such movements in rates.
10	Fees and commissions	The fees and commissions are as contained in the Guide. These should be stated in percentage and Naira terms.
11	Repayment terms	This should state the frequency (i.e. monthly, quarterly, bullet etc.) of repayment of principal and interest on outstanding balance. Page 61 of 68

	It should also state the date on which the repayments fall due.
12	Repayment schedule	The	bank	should	provide	in	details,	the
	periodic	amounts	to	be	repaid	by	the
	borrower within the tenor of the facility.
13	Early Liquidation Terms	This	includes	all	information	the	borrower
	needs to know, including rights/obligations, or penalties, in the event of liquidation of the facility, before the expiry date, in line with Guide.
14	Late repayment	This should detail all penalties that will be borne by the borrower in the event of default, in line with the Guide.
15	Grace period	a.	Seven (7) days shall be allowed within which there will be no penal charge on late repayments.
	b.	Seven	(7)	days	from	the	date	of
	execution,	shall	be	allowed	within
	which loan contracts can be rescinded.
16	Insurance	requirements	(where	The bank is expected to disclose the nature of
applicable)	insurance policy required for the facility.
17	Conditions	precedent	to	This details all requirements which must be
drawdown	fulfilled by the borrower before drawdown on the facility. Such information includes the submission of Insurance documents, receipt by the bank of collateral documentation, execution of loan offer letter, etc.
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Consumer Loans

This encompasses the various types of loans given to individuals either to finance the acquisition of an asset or to execute personal projects. Some of these loans are unsecured and are based on the borrower's ability to repay.

(a) Unsecured personal loans;
(b) Secured personal loans;
(c) Computer loans; (d) Auto loans; (e) Other forms of bridging finance availed to borrowers.

S/N	DISCLOSURE REQUIREMENT
1	Name and address of creditor	This includes the name, address and day-time contact details of the borrower.
2	Item financed	This states the consumer good(s) to which the bank is financing.
3	Itemization of amount financed	This	gives	a	breakdown	of	the	item(s)	being
		financed.
4	Annual percentage rate (APR)	This is the interest rate which will be charged by the bank on the amount disbursed.
5	Variable rate information	This should clearly state the possibility of increase in rates in line with money market conditions. It should also outline the bank's responsibilities in the event of a movement in rates, including the means and timing of its notification to the customer.
6	Payment schedule	The bank should also disclose with details, all necessary repayment information including the monthly, quarterly or other repayment sums as was agreed with the borrower.
7	Prepayment Terms	This includes all information the borrower needs to know during the consummation of the facility, such as the customer's rights (and penalties) in the event of his decision to pay off the facility before its expiration, etc.
8	Late payment policy	This should detail all penalties that will be suffered Page 63 of 68

		by the borrower in the event of default.
9	Collateral	The bank will be required to disclose the property, goods, shares and/or other assets pledged by the borrower as security for the facility.
10	Insurance requirements (where	The bank is expected to disclose the nature of
	applicable)	insurance policy required for the facility.
11	Repayment terms	This includes all information the borrower needs to know before the consummation of the facility, which includes information such as the bank's right to call in the facility (in the event of certain occurrences), etc.
12	Loan tenor	This spells out the approved duration for the facility.
13	Conditions precedent to	This details all requirements which must be fulfilled
	drawdown	by the borrower before drawdown on the facility. Such information includes the submission of Insurance documents, perfection of collateral documentation, etc.
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Mortgage Loans

S/N	DISCLOSURE REQUIREMENT
1	Name and address of creditor	This includes the name, address and day-time contact details of the borrower.
2	Description of the property	This should describe location and other features
	financed	of property being financed by the bank.
3	Itemization of amount	This gives a breakdown of the item(s) being
	financed	financed.
4	Annual percentage rate (APR)	This is the interest rate which will be charged by the bank on the amount disbursed.
5	Variable rate information	This should clearly state the possibility of increase in rates in line with money market conditions. It should also outline the bank's responsibilities in the event of a movement in rates, including the means and timing of its notification to the customer.
6	Payment schedule	The bank should also disclose with details, all necessary repayment information including the monthly, quarterly or other repayment sums as was agreed with the borrower.
7	Prepayment Terms	This includes all information the borrower needs to know during the consummation of the facility, such as the customer's rights (and penalties) in the event of his decision to pay off the facility before its expiration, etc.
8	Late payment policy	This should detail all penalties that will be suffered by the borrower in the event of default.
9	Collateral	Usually, the security for the loan is the property being financed.
10	Insurance requirements	The bank is expected to disclose the nature of
	(where applicable)	insurance policy required for the facility.
11	Repayment terms	This includes all information the borrower needs to know before the consummation of the facility, which includes information such as the bank's Page 65 of 68

	right to call in the facility (in the event of certain occurrences), etc.
12	Loan tenure	This spells out the approved duration for the facility.
13	Conditions precedent to	This	details	all	requirements	which	must	be
drawdown	fulfilled by the borrower before drawdown on the facility. Such information includes the submission of Insurance documents, perfection of collateral documentation, etc.
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S/N	DISCLOSURE REQUIREMENT
1	Name and address of creditor	This	includes	the	name,	address	and	day-time
	contact details of the borrower.
2	Reason for the loan	This should describe the customer's needs which the overdraft is aimed to finance.
3	Overdraft limits	The limits on the OD line should be clearly stated.
4	Annual percentage rate (APR)	This is the interest rate which will be charged by the bank on the amount disbursed.
5	Variable rate information	This should clearly state the possibility of increase in rates in line with money market conditions. It should also outline the bank's responsibilities in the event of a movement in rates, including the means and timing of its notification to the customer.
6	Late payment policy	This should detail all penalties that will be suffered by the borrower in the event of default.
7	Collateral	Usually, the security for the loan should be clearly stated.
8	Insurance requirements (where	The bank is expected to disclose the nature of
	applicable)	insurance policy required for the facility.
9	Repayment terms	This includes all information the borrower needs to know before the consummation of the facility, which includes information such as the bank's right to call in the facility (in the event of certain occurrences), etc.
10	Loan tenure	This spells out the approved duration for the facility.
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Overdrafts

MINIMUM DISCLOSURE REQUIREMENTS FOR CONTINGENT

LIABILITIES

LIABILITIES
PRODUCTS	DISCLOSURE REQUIREMENTS
Bid Bond	- Bank should issue offer letter stating all terms and conditions; - Where customer provides cash - Place in an investment account at an agreed rate; - Where bank provides funds - Parties should agree on a rate and other transaction dynamics
Performance Bond	- Issue	offer	letter	stating	all	terms	and
conditions, based on risk assessment
Advance Payment Guarantee	- Issue	offer	letter	stating	all	terms	and
conditions, specifically utilization of proceeds to be received;
- Appointment of quantity surveyor/expert
Bank Guarantee	- Issue	offer	letter	stating	all	terms	and
conditions,		most	importantly	when	risk
crystallizes;
- Where customer provides cash - Place in an investment account at an agreed rate.
Indemnities	- Issue	offer	letter	stating	all	terms	and
conditions and specify when risk crystallizes.
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