CBN increases ATM card replacement fee, scraps maintenance charge

The Central Bank of Nigeria (CBN) has increased the fee for issuing or replacing regular ATM debit and credit cards by 50 percent, from N1,000 to N1,500, while removing the monthly maintenance charge on Naira-denominated cards.

The changes were announced in the apex bank’s 2026 Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs), a policy document that outlines fees banks and financial service providers can charge customers.

Under the new guide, holders of Naira debit or credit cards will no longer pay the monthly maintenance fee previously charged by banks. However, customers with foreign currency-denominated cards will continue to pay an annual maintenance fee of $10.

The CBN stated that, “ATM card issuance/replacement charges for regular/basic debit/credit cards is N1,500,” adding that charges for premium debit, credit, or hybrid cards will remain negotiable, while virtual cards will be issued at no cost.

In another move, the regulator reaffirmed that customers making payments with their cards at merchant outlets should not be charged transaction fees. Instead, the Merchant Service Charge will be paid by the merchant.

“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder,” the CBN said. “The MSC payable by a merchant (0.5 percent), subject to a cap of N10,000, shall be the same irrespective of the technology or payment method used.”

Why the Change

According to a circular signed by the Director of the Financial Policy and Regulation Department, Rita Sike, the review is part of efforts to strengthen Nigeria’s financial system, deepen financial inclusion, and support the growth of digital payments.

“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 CBN said.

The bank added that the revised charges also reflect changes in the industry since the last guide was issued in 2020 and are designed to encourage wider use of electronic banking channels.

For years, Nigerian bank customers have complained about multiple account and card-related charges, especially recurring maintenance fees and electronic transaction costs. The latest review appears aimed at easing some of those concerns by removing monthly card maintenance charges, even as the cost of replacing physical cards rises.

The move also comes as regulators push for a cashless economy, with increasing emphasis on digital banking, mobile payments, and lower-cost transactions for everyday users.