Three Cheapest Ways To Send Money From One Nigerian Bank To Another In 2026 (And How To Avoid Extra Charges)

Why Transfer Charges Changed In Nigeria

If you send money often in Nigeria, you have noticed that charges are not the same as before.

The Central Bank of Nigeria (CBN) released a new Guide to Charges by Banks that took effect from May 1, 2026. Under the new guide, electronic transfers are now cheaper for small amounts.

According to reports from https://www.legit.ng/business-economy/money/1624210-cbn-announces-new-transfer-withdrawal-fees-atms-channels/ and https://techcabal.com/2025/05/12/cbn-new-guide-transfer-fees/, this is the current official cap for NIP interbank transfers:

• N0 to N5,000: FREE – No bank fee
• N5,001 to N50,000: N10 maximum
• Above N50,000: N50 maximum

There is also a Stamp Duty / EMTL of N50 that the Federal Government collects on transfers of N10,000 and above. Since January 2026, this N50 is now paid by the sender, not the receiver. So if you send N15,000, you will pay N10 bank fee + N50 stamp duty = N60 total deducted, as shown in https://techcabal.com/2025/05/12/cbn-new-guide-transfer-fees/.

Now, here are the three cheapest ways to move money from one Nigerian bank to another using that new price.

1. Use Your Bank Mobile App – The Cheapest And Fastest

What it is: Every major bank like GTB, Access, FirstBank, UBA, Zenith has a mobile app. When you send money from your bank app to another bank, it uses NIP (NIBSS Instant Payment) and it is instant.

Approximate charge: This is the cheapest because it follows the CBN cap directly.

• Send N4,000: N0
• Send N20,000: N10 bank fee + N50 stamp duty = N60
• Send N100,000: N50 bank fee + N50 stamp duty = N100

Most bank apps do not add extra commission on top. It is the same price whether you use GTWorld, AccessMore, FirstMobile or UBA Mobile.

When it is best to use it: Use your bank app when you have data, you send money often, and you want full control. It is best for salaries, rent, daily business transfers, and for keeping your transaction receipt. You can also save beneficiaries, so you don't type account numbers every time.

Good point: It works 24/7, even on weekends, and it shows you the exact fee before you confirm.

1. Use USSD Code – Best When You Have No Data

What it is: USSD is the code you dial like \_901# for Access, \_737# for GTB, \_894# for FirstBank, \_919# for UBA. You don't need internet. It also uses NIP.

Approximate charge: The transfer fee is the same as bank app – FREE under N5k, N10 for N5k-N50k, N50 above N50k plus N50 stamp duty if you send N10k and above.

But there is an extra cost. Since mid-2025, the CBN and NCC introduced End-User Billing for USSD, which means your mobile network (MTN, Airtel, Glo, 9mobile) now deducts about N6.98 per USSD session from your airtime, not from your bank account. So if your session takes long, you may be charged for 2 sessions.

So a N20,000 transfer via USSD costs: N10 bank fee + N50 stamp duty + N6.98 airtime = N66.98

When it is best to use it: Use USSD when you have no data, no smartphone, or you are in an area with poor network. It is best for emergency transfers, for people in villages, and when your phone battery is low and you cannot open an app. It is also good for people who don't want to install many bank apps.

You can read more about the current structure on https://nairametrics.com/2025/05/06/cbn-caps-bank-fees-mandates-transparency-in-proposed-guidelines/.

1. Use A Bank ATM With Instant Transfer Or Fintech App That Uses Bank Rails

What it is: Many people forget you can send money from any bank ATM to another bank using Quickteller or NIP transfer option. Also, many Nigerians now use bank-backed fintech apps like OPay, PalmPay, Moniepoint that still send via NIP rails but often subsidize the fee.

Approximate charge:

• At the ATM: Transfer is still capped at N10 for N5k-N50k, N50 above N50k. Using your own bank's ATM is free for withdrawal, but interbank transfer at ATM follows same NIP price.

• On fintech apps: Some like OPay and PalmPay still offer 3-5 free interbank transfers per day, then charge N10 afterwards. So for small transfers, you can actually pay N0 total even for N20,000 if you have free slots.

When it is best to use it: Use ATM transfer when your app is not working but you are near an ATM. Use fintech apps when you send small amounts daily and you want to enjoy free transfers. For example, if you are a POS agent or market woman sending N3,000 five times a day, using a fintech with free transfers saves you up to N50 per day.

One Small Tip To Avoid Extra Fees

This one tip will save you hundreds of naira every month:

Break large transfers or keep them below N10,000 if you can, and turn off SMS alerts.

Here is why:

• Stamp duty of N50 only starts from N10,000. If you send N15,000 once, you pay N10 + N50 = N60. But if you send N8,000 + N7,000 as two transfers (both below N10k), you pay only N10 + N10 = N20. No N50 stamp duty each because each is below N10k. This only works if you have free transfers. If you pay N10 per transfer, two transfers still cost N20 vs N60 – you save N40.

• Second, turn off SMS alert charges. Many banks charge N4 to N6 per SMS. If you do 20 transfers a month, that is N100+ just for alerts. Instead, use email alerts and app push notifications which are free under the new CBN guide, as reported by https://www.legit.ng/business-economy/money/1624210-5-banking-services-free-as-cbn-announces-withdrawal-deposit-fees-changes-from-may-1/. Go to your bank app > Settings > Alerts > turn off SMS.

Finally, always check the fee before you tap "Send". The CBN now says banks must show you the fee before you confirm. If you are charged more than FREE for under N5k, N10 for N5k-N50k, N50 for above N50k, you can complain via your bank and then via CBN's complaint portal at https://www.cbn.gov.ng.

In short, for cheap transfers today, use your bank app for big amounts, USSD when you have no data, and fintech free slots for daily small amounts.