1. Yes, there is a charge

But this charge is for failed direct debits, not all debit transactions.

You won't be charged if a bill payment, airtime (or data) purchase, outward transfer, ATM withdrawal or card payment fails.

You get the picture.

2. A direct debit needs your permission.

For a direct debit to be made on your account, you have to give your bank a written and signed instruction to pay on your behalf at a specific time.

If, for example, you pay a certain bill every month or quarter, you can instruct your bank to pay the billing company every time the bill is due.

This isn't common because we settle most bills on a pay-as-you-go basis but it's an actual thing.

3. A direct debit fails when an account doesn't have enough money in it.

If this ever happens to you (hopefully never), you will be charged 1% of the amount you were supposed to pay or 5,000 naira - whichever figure is higher.



That's a Central Bank rule, as you must already know.