Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Central Bank of Nigeria (CBN) has increased the fee for the issuance and replacement of Automated Teller Machine (ATM) debit and credit cards by 50 per cent, raising it from N1,000 to N1,500, according to an exposure draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) in Nigeria 2026 released on Friday. The apex bank also abolished the N50 monthly maintenance charge previously applied to naira‑denominated debit and credit cards, a fee that typically included 7.5 per cent Value Added Tax (VAT). However, holders of foreign currency‑denominated cards will continue to pay an annual maintenance fee of $10. The changes are part of the CBN’s broader policy shift towards a more transparent and consumer‑friendly banking environment, aligning the 2020 guide with current realities.
The revised guide, contained in a circular addressed to banks, other financial institutions and the public, was signed by the Director of the Financial Policy and Regulation Department, Dr. Rita Sike. According to the document, “ATM card issuance/replacement charges for regular/basic debit/credit card is N1,500. Charges for premium debit/credit/hybrid card are negotiable. Virtual cards at no charge.” The CBN explained that the review was undertaken to fulfill its mandate of promoting a safe and sound financial system in Nigeria, accelerating the adoption of innovative financial services, advancing financial inclusion, and facilitating micropayments and low‑value transactions. “This reviewed Guide provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions,” the circular stated.
The new fee structure represents a notable increase for bank customers, many of whom already face multiple service charges, including transfer fees, SMS alert deductions and ATM withdrawal costs under previous CBN directives issued in February 2025. Under those rules, customers withdrawing from another bank’s ATM pay N100 per N20,000 on on‑site machines, while off‑site withdrawals attract an additional surcharge of up to N500 per N20,000. The latest hike in card issuance fees is likely to compound the financial burden on consumers, particularly low‑income account holders who are the most reliant on basic debit cards for accessing their funds.
In a move that will benefit cardholders, however, the CBN has also reiterated that the cost of ATM transactions conducted on merchants’ Point‑of‑Sale (PoS) terminals will be borne entirely by merchants, not by customers. The circular states: “There shall be no charge to the cardholder paying the merchant. All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the Merchant Service Charge (MSC) shall be borne by the merchant. The MSC payable by a merchant (0.5 per cent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.” This provision is expected to encourage greater use of electronic payments by removing the cost burden that had previously deterred some cardholders from using PoS terminals.
The updated guide is currently an exposure draft, and the CBN has opened it for public comments before final implementation. The bank noted that the framework also strengthens responsibility for oversight and accountability while encouraging the development of new financial products and accommodating new industry participants who have emerged since the 2020 guide was issued. The CBN said the review “reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodates new industry participants since the issuance of the 2020 Guide.”
Consumer advocacy groups have expressed mixed reactions. While some welcomed the abolition of the monthly maintenance charge, many voiced concern over the 50 per cent hike in card issuance and replacement fees. “The increase in card fees will hit the most vulnerable hardest – those who lose their cards or need a first‑time card to access banking services,” said an official of a Lagos‑based consumer rights organisation who spoke on condition of anonymity. Others noted that while the fee increase is significant, the removal of the recurring N50 monthly charge provides some offset for regular card users over time.
Bank analysts have pointed out that the hike reflects the rising cost of card production, personalisation and delivery, particularly given the current foreign exchange challenges. The CBN, however, has made it clear that the primary objective of the revised guide is not to generate revenue for banks but to create a more transparent, predictable and equitable fee regime. As the public comment period unfolds, stakeholders from consumer groups, bank customers and financial institutions are expected to weigh in before the final version of the guide takes effect.
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