The Central Bank of Nigeria (CBN) has reviewed upward the cost of issuing or replacing debit and credit cards, increasing the charge from N1,000 to N1,500. The adjustment forms part of a broader revision of banking fees and charges across Nigeria’s financial system.
The new directive was contained in a circular titled “Guide to Charges by Banks and Other Financial Institutions,” issued on Thursday, with implementation set to commence on May 1. It applies to standard ATM cards issued by commercial banks and other CBN-regulated financial institutions nationwide.
According to the apex bank, the revised framework replaces the previous 2020 guidelines and is aimed at improving transparency, standardisation, and competition within the financial services sector. The regulations cover commercial banks, microfinance banks, payment service banks, and mobile money operators.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the CBN stated.
Key Changes in Card and Account Charges
While the cost of issuing or replacing debit and credit cards has increased, the CBN clarified that naira-denominated debit and credit cards will not attract maintenance fees. Virtual cards, it added, will remain free of charge.
The central bank also maintained that account maintenance charges on current accounts remain negotiable but subject to caps, with a phased reduction already scheduled. Under the new timeline, such charges will be limited to ₦0.5 per mille in 2026 before being phased out completely by 2027.
ATM, Transfer, and POS Transaction Rules
The revised guide introduces a structured pricing system for electronic transactions and ATM usage:
- POS payments to merchants remain free for customers, with the merchant bearing the service charge
- Merchant service charge is set at 0.5% of transaction value, capped at ₦10,000
- ATM withdrawals from other banks will cost ₦100 per ₦20,000 at on-site ATMs
- Off-site ATMs may attract an additional surcharge of up to ₦500 per transaction, subject to disclosure
For electronic transfers:
- Transfers of ₦5,000 and below remain free
- Transfers between ₦5,000 and ₦50,000 attract a ₦10 charge
- Transfers above ₦50,000 will cost ₦50
The CBN emphasized that all applicable charges must be transparently disclosed at the point of transaction.
Consumer Protection and Transparency Measures
The apex bank said financial institutions must ensure that charges are only applied based on available account balances, with any outstanding deductions deferred until funds are available.
It also directed banks to clearly inform customers when fees are negotiable, stressing that customers must be made aware of their right to negotiate charges at the beginning of transactions.
SMS alerts for customer-initiated transactions may still attract charges, but only on a cost-recovery basis, while email alerts must remain free of charge.
Certain services, including account reactivation and routine account maintenance processes, will continue to be offered free of charge. The CBN further stated that any new fees, products, or services not covered in the framework must receive prior written approval before implementation.
Broader Regulatory Objective
According to the central bank, the revised guide is part of ongoing reforms aimed at strengthening consumer protection, improving fairness in banking fees, and ensuring greater consistency across Nigeria’s financial sector.
By restructuring charges and enforcing clearer disclosure requirements, the CBN said it seeks to promote a more transparent and efficient financial ecosystem while safeguarding customer interests.