Sterling Bank Removes Account Maintenance Fees on Personal Accounts

In a bold move timed with Nigeria’s 65th Independence Day celebrations, Sterling Bank has announced that it will eliminate account maintenance fees on all personal bank accounts. The bank described the decision as a “gift” to its customers, positioning it as part of a broader push to enhance fairness and reduce transactional barriers in the retail banking sector.

According to a statement issued by Sterling Bank, the new policy abolishing the fees takes effect immediately. The bank said the removal of account maintenance charges aligns with a customer-centric philosophy, complementing earlier measures such as its decision in April 2025 to remove transfer fees on local online transactions. The move is framed as part of a larger effort to allow customers keep more of their funds and enjoy greater financial freedom.

Sterling’s Managing Director, Abubakar Suleiman, explained that every fee eliminated is one less barrier between customers and the full value of their money. He said the decision reflects a consistent strategy: “This was the rationale behind eliminating transfer fees in April, and it is the same principle we uphold as we eliminate account maintenance fees.” The bank estimates that in 2024, tier-one banks in Nigeria collected over ₦650 billion in account maintenance and e-banking charges. By removing these deductions, Sterling aims to disrupt a revenue stream long accepted across the banking industry.

Obinna Ukachukwu, Sterling’s Growth Executive for Consumer and Business Banking, said the initiative seeks to deepen customer loyalty and build long-term relationships. He framed the policy as both a value proposition and a strategic differentiator for Sterling in the competitive Nigerian banking space. “We put transparency and customer value first, and in doing so, we are building a foundation that serves both our customers and Sterling’s future,” he said.

Industry observers see Sterling’s decision as bold, especially given the toll that fee income has taken on banks’ traditional revenue models. By removing account maintenance fees, a staple source of earnings for many banks, Sterling is signaling confidence in alternative revenue strategies—perhaps via digital services, value-added products, or higher volumes of transaction activity.

The timing of the policy is notable. Coming on a national day of celebration, the bank’s management appeared to leverage the occasion to make a high-visibility gesture to Nigerians. While symbolic, the move also forces competitors to respond: other banks may face pressure to reduce or eliminate fees themselves in order to retain customers.

Notwithstanding its appeal to customers, the elimination of account maintenance fees presents potential risks. Revenue loss is an obvious concern. If fee incomes drop significantly, banks must find alternative revenue sources or cut costs to maintain profitability. The sustainability of the move relies heavily on Sterling’s ability to monetize other banking operations—such as lending, credit products, cross-selling, and digital services—to offset the lost fee revenue.

Moreover, the policy will test Sterling’s operational and risk management frameworks. As account balances shift and customer behavior evolves, the bank must ensure that liquidity, deposit stability, and cost structures remain balanced. There is also a question of whether all account types are covered uniformly, or if special categories—such as corporate or premium accounts—are exempt or subject to different rules.

Customer reaction has largely been positive. Many Nigerians welcomed the announcement, viewing it as a relief from surcharges that quietly erode account balances over time. For small account holders or those with modest balances, maintenance fees can cumulatively have a noticeable adverse impact. Eliminating such charges could especially benefit students, low-income earners, and small businesses that make frequent small transactions.

But some skeptics warn that the elimination of maintenance fees might come with hidden costs—such as tighter controls on account balances, stricter minimum balances, or new product charges in other forms. Customers will be watching closely to see whether the move is accompanied by any trade-offs.

In April 2025, Sterling Bank introduced a zero transfer fee policy for local online transactions, making it the first major Nigerian bank to eliminate such charges. That decision was framed as part of the bank’s broader philosophy of making banking more customer-friendly and affordable. The account maintenance fee removal deepens that narrative and positions Sterling as a challenger bank focused on transparency and value.

If it achieves the dual goals of retaining customer trust and replacing lost revenues, Sterling’s experiment could influence wider change in Nigeria’s banking sector. Competitors may feel compelled to revisit their fee structures, especially if customers begin migrating to banks that offer lower or no maintenance charges. Over time, pricing pressure among banks may accelerate a trend toward low-cost or no-fee retail banking models.

 

In sum, Sterling Bank’s decision to scrap account maintenance fees is a bold gambit that speaks to customer value and differentiation. Its success will depend on how well the bank balances lost fee income with growth in other revenue lines, maintains financial stability, and manages customer expectations. For now, it stands as a high-profile statement in Nigeria’s banking industry: that the era of punitive banking charges may be starting to fade.