Why Sterling Bank will remain compliant with government EMTL, despite zero transfer fees —MD

DESPITE eliminating transfer fees for customers, Sterling Bank has reaffirmed its full compliance with the Federal Government’s Electronic Money Transfer Levy (EMTL) policy.

This assurance follows recent questions about the bank’s compliance, given its decision to scrap transfer fees. The EMTL, a government-mandated charge of N50 on electronic transfers, forms part of revenue shared by the Federation Account Allocation Committee (FAAC). In February 2025 alone, N35.17 billion was collected and distributed across the three tiers of government.

Sterling Bank clarified that while customers now enjoy zero transfer fees, the EMTL is still being remitted to the appropriate authorities. “We are not exempt from the levy. We simply collect and remit,” said Abubakar Suleiman, Managing Director and CEO of Sterling Bank, during a recent press briefing in Lagos.

“We act as an agent of the government in this regard. The N50 levy is collected and paid back to them, as required by law,” he stated. Suleiman emphasized that the bank’s decision to absorb the fees is part of a broader strategy to deepen financial inclusion and enhance user experience.

Suleiman outlined the bank’s approach in three core pillars: eliminating transaction fees, creating partnerships that help customers grow their wealth, and offering accessible credit solutions. “Our promise is simple: no fees from us, partnerships that work for our customers, and easy access to credit when it matters most,” he said.

He added that the current initiative is open to all customers who join in April, hinting that the offer might not be permanent. “At some point, we will need to limit the offer to those already banking with us. April is the window, and we’ll honor it fully,” he noted.

The CEO also explained that this shift was made possible by Sterling Bank’s decision to build its own core banking application entirely with Nigerian talent. “We’ve broken free from expensive foreign technologies. That’s the real innovation—not just removing fees, but building a system that sustains it,” Suleiman explained.

He further stressed that banks aren’t simply seeking profit from fees, but must often recoup heavy investments in technology and infrastructure. “A single instant payment can involve up to ten software systems, many of which are foreign, costly, and essential for data security and real-time delivery,” he said. “But when you own the infrastructure, you gain the power to reduce costs.”

Backing Suleiman’s position, Obinna Ukachukwu, Sterling’s Growth Executive for Consumer and Business Banking, described the policy as both a reward and an invitation.

“We owe this to customers who stood by us through our transformation. And we welcome new ones ready to bank differently,” he said.

Ukachukwu confirmed that Sterling continues to bear some costs, including fees paid to switching companies and other banks. “But we believe this is the right step. And if more banks join us, the entire industry—and customers—will benefit,” he concluded.

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