The Central Bank of Nigeria (CBN) has increased the fee for issuing and replacing ATM debit and credit cards to N1,500, a 50 percent rise from the previous N1,000 charge. This directive applies to all banks in the country, including major lenders such as Access Bank and United Bank for Africa, which must implement the revised charges in line with the regulator’s new guidelines.
Monthly Debit Card Maintenance Fee Scrapped
In a move that offers relief to bank customers, the CBN has abolished the N50 monthly maintenance charge previously applied to naira-denominated debit and credit cards. This fee typically included a 7.5 percent Value Added Tax and had been a recurring cost for account holders. However, foreign currency-denominated cards will still attract an annual maintenance fee of $10, maintaining a distinction between local and international card services.
Free Virtual Cards and Flexible Premium Card Pricing
Under the revised guide, virtual cards will now be issued at no cost to customers, promoting digital banking and reducing barriers to electronic payments. Charges for premium debit, credit, or hybrid cards are not fixed; banks can negotiate pricing based on the features and benefits attached to such products, introducing flexibility for high-end banking services.
Merchants to Bear PoS Transaction Costs
The CBN has reaffirmed that customers will not be charged for transactions at merchant locations using Point-of-Sale (PoS) terminals. Instead, the Merchant Service Charge (MSC) will be borne entirely by merchants. The MSC remains at 0.5 percent per transaction, subject to a maximum cap of N10,000. This charge is uniform regardless of the payment method or technology used, encouraging cashless transactions while protecting consumers from extra fees.
New Guide Targets Financial Inclusion and Innovation
The revised charges were outlined in the CBN’s exposure draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) 2026. In a circular signed by the Director of Financial Policy and Regulation, Dr. Rita Sike, the apex bank stated that the review aligns with its mandate to ensure a safe and sound financial environment. It also aims to accelerate the adoption of innovative financial services and expand financial inclusion. The updated guide introduces a wider range of financial services, strengthens oversight and accountability, and reduces tariffs for micropayments to encourage participation in the formal financial system.
Push for Digital Payments Adoption
By eliminating certain charges while adjusting others, the CBN is signaling a clear push toward electronic payment channels. The introduction of free virtual cards and the removal of maintenance fees are expected to drive increased usage of digital banking tools. At the same time, the upward review of ATM card issuance fees reflects rising operational costs within the banking sector and the need to balance sustainability with customer affordability. Overall, the new policy framework underscores the regulator’s effort to create a more efficient, transparent, and inclusive banking ecosystem in Nigeria.
Legit.ng earlier reported that the CBN released a draft of its revised Guide to Charges by Banks and Other Financial Institutions, 2026, introducing new caps on transaction fees and stricter disclosure rules aimed at improving transparency across Nigeria’s banking sector. In a circular dated April 21, 2026, the apex bank said the updated framework reflects its broader goal of strengthening financial stability, expanding financial inclusion, and accelerating the adoption of digital financial services.
