The Central Bank of Nigeria has increased the fee for issuing and replacing ATM debit and credit cards by 50 percent, raising it from N1,000 to N1,500.
At the same time, the apex bank has scrapped the N50 monthly maintenance charge previously applied to naira-denominated debit and credit cards.
New Charges Framework Introduced
The changes were outlined in the apex bank’s Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) 2026, which seeks to update banking fees and promote digital financial services.
Under the revised framework:
- ATM card issuance/replacement now costs N1,500
- Monthly maintenance fees on naira cards have been eliminated
- Virtual debit cards will be issued at no cost
- Charges for premium cards will remain negotiable
However, customers using foreign currency-denominated cards will still pay an annual maintenance fee of $10.
Merchants to Bear Transaction Costs
The CBN also clarified that cardholders will no longer bear costs for transactions at merchant locations.
Instead, the Merchant Service Charge (MSC) will be paid entirely by merchants, set at 0.5 percent per transaction, with a cap of N10,000.
This means customers making payments via Point of Sale (PoS) terminals will not be charged directly for those transactions.
Policy Aims and Financial Inclusion Drive
In a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the CBN said the review aligns with its mandate to ensure a stable financial system.
The apex bank noted that the revised guide is designed to:
- Encourage adoption of electronic payment channels
- Support innovation in financial services
- Expand financial inclusion
- Reduce transaction costs for low-value payments
The update also reflects changes in Nigeria’s financial ecosystem since the last guideline issued in 2020, including the rise of fintech players and digital banking solutions.
Implications for Customers and Banks
While the increase in card issuance fees may raise short-term costs for customers, the removal of monthly maintenance charges is expected to reduce long-term banking expenses.
Analysts say the move could further accelerate the shift toward cashless transactions, as the CBN continues efforts to deepen digital payment adoption across Nigeria.
