CBN raises ATM card issuance fee to N1,500, removes maintenance charges

The Central Bank of Nigeria (CBN) has increased the cost of issuing or replacing debit and credit cards from N1,000 to N1,500, as part of an updated guide on bank charges.

The new fee, which takes effect from May 1, applies to standard ATM cards issued by banks and other financial institutions regulated by the apex bank.

In a circular released on Thursday titled “Guide to Charges by Banks and Other Financial Institutions,” the CBN also announced the removal of maintenance fees on naira-denominated debit and credit cards. However, it noted that virtual cards will continue to be issued at no cost.

The revised guidelines replace the previous framework introduced in January 2020 and cover all institutions under the CBN’s supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.

According to the regulator, the updated guide was developed after consultations with stakeholders and is aimed at improving transparency, standardisation, and competition within Nigeria’s financial system.

Under the new structure, customers will not be charged for point-of-sale (POS) transactions. Instead, merchants will bear a service charge set at 0.5 percent of the transaction value, capped at N10,000 per transaction, regardless of the payment channel used.

The CBN also clarified that while banks may charge for SMS transaction alerts, such fees must be limited to cost recovery. Email alerts, however, must be provided free of charge.

For current accounts, maintenance fees will remain but are subject to a capped rate. The charge is set at N0.5 per mille for 2026 and will be completely phased out by 2027.

Customers using another bank’s ATM will be charged N100 for every N20,000 withdrawn at on-site machines. Off-site ATM withdrawals may attract an additional surcharge of up to N500 per transaction, provided customers are informed before completing the transaction.

Electronic transfer fees remain unchanged, with transactions of N5,000 and below free of charge. Transfers between N5,000 and N50,000 will cost N10, while those above N50,000 will attract a N50 fee.

The CBN emphasised that banks must only apply charges based on the available balance in a customer’s account, deferring any outstanding fees until sufficient funds are available.

It also directed financial institutions to notify customers when charges are negotiable and to highlight their right to negotiate at the outset of transactions.

Additionally, routine services such as account reactivation will remain free. The CBN stated that any new fee, product, or service not included in the guide must receive prior approval from the regulator.

The apex bank said the revised framework is part of ongoing efforts to strengthen consumer protection, promote fairness, and ensure consistency in banking charges across the country.