The banking experience for millions of Nigerians is set for another round of adjustments after the Central Bank of Nigeria rolled out a revised framework that removes card maintenance fees on naira-denominated cards, while also reshaping several other charges across the financial system.
Under the updated “Guide to Charges by Banks and Other Financial Institutions,” the apex bank said it is seeking to simplify pricing, improve transparency, and strengthen competition across regulated financial institutions.
In its own words, the CBN explained: “The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system.”
The new rules take effect from May 1 and apply broadly to commercial banks, microfinance banks, payment service banks, and mobile money operators.
No More Card Maintenance Fees, but Issuance Costs Go Up
One of the most notable changes is the removal of card maintenance fees on naira debit and credit cards. Customers will no longer be charged recurring maintenance fees for holding or using these cards, a move expected to reduce the cost of everyday banking.
However, this relief comes with a trade-off. The cost of issuing or replacing debit and credit cards has been increased from N1,000 to N1,500. Virtual cards, according to the CBN, remain free of charge.
The adjustment, the bank explained, is part of its broader review of banking costs aimed at balancing affordability with operational realities for financial institutions.
POS Transactions Stay Free for Customers, Merchants Bear Charges
For everyday retail payments, the structure remains largely consumer-friendly. Point-of-sale (POS) transactions initiated by customers will continue to attract no charges.
Instead, merchants are responsible for the merchant service charge, which has been pegged at 0.5 percent of the transaction value, capped at N10,000 per transaction regardless of the payment method.
This means customers paying with cards at shops, restaurants, or service outlets will not directly bear any POS-related fees.
ATM Withdrawals and Transfer Fees Adjusted
Cash withdrawals from ATMs belonging to other banks will now attract N100 per N20,000 withdrawn at on-site machines. For off-site ATMs, an additional surcharge of up to N500 may apply, but this must be clearly disclosed at the point of withdrawal.
Electronic transfers also follow a tiered pricing structure:
- Transfers of N5,000 and below remain free
- Transfers between N5,000 and N50,000 attract N10
- Transfers above N50,000 cost N50
The CBN emphasized consumer protection, stating that deductions must not exceed available balances. As outlined in the circular: “Financial institutions shall apply non-credit related charges on an account only to the extent of the balance in the account and defer any outstanding charge until the account is funded.”
Account Maintenance, Alerts, and Customer Rights
Current account maintenance fees remain in place but are subject to caps and gradual reduction. The charge is set at “N0.5 per mille in 2026,” with a full phase-out planned by 2027.
On transaction alerts, SMS notifications may still attract charges, but only on a cost-recovery basis. Email alerts, however, must be provided free of charge.
The CBN also stressed that customers must be informed when fees are negotiable. According to the guideline: “Where a charge is stipulated as ‘negotiable’, financial institutions are required to draw the attention of customers to their rights to negotiate at the beginning of the transactions and subsequently, if the need arises.”
Consumer Protection and System-Wide Reform
Beyond pricing adjustments, the revised guide introduces stricter rules requiring banks to obtain CBN approval before introducing any new fees, products, or services not already listed.
Account reactivation and several routine services will remain free, reinforcing the regulator’s push to reduce unnecessary charges on customers.
Overall, the updated framework signals a continued shift by the Central Bank of Nigeria toward tighter regulation of banking fees, while attempting to balance consumer protection with the operational needs of financial institutions across the country.