The Central Bank of Nigeria has announced an increase in the cost of issuing or replacing debit and credit cards, raising the fee from N1,000 to N1,500 as part of a broader revision of banking charges.
The adjustment is contained in a new circular released on Thursday, titled ‘Guide to Charges by Banks and Other Financial Institutions’. According to the apex bank, the new fee will take effect from May 1 and applies to standard ATM cards issued by financial institutions across the country.
Despite the increase, the regulator clarified that maintenance fees will not be charged on naira-denominated debit or credit cards, while virtual cards will continue to be issued at no cost.
The updated guide replaces the previous version introduced in January 2020 and applies to all CBN-regulated institutions, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
The CBN said the revised framework followed consultations with industry stakeholders and is aimed at improving transparency and consistency in the application of charges within the financial system.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.
Under the new structure, customers will not pay fees for point-of-sale (POS) transactions, as merchants are responsible for covering the merchant service charge. This charge is pegged at 0.5 per cent of the transaction value, with a maximum cap of N10,000, regardless of the payment channel used.
On transaction alerts, the CBN maintained that banks may charge for SMS notifications on customer-initiated transactions, but only to recover costs. However, email alerts must be provided free of charge.
The regulator also retained provisions on account maintenance fees for current accounts, noting that such charges remain negotiable but are subject to a capped rate. The fee is set to reduce gradually, reaching “N0.5 per mille in 2026” before being eliminated by 2027.
For ATM withdrawals, customers using another bank’s machine will be charged N100 for every N20,000 withdrawn at on-site ATMs. Off-site withdrawals may attract an additional surcharge of up to N500 per transaction, provided the charge is clearly disclosed at the point of use.
Electronic transfers were also addressed in the new guide. Transfers of N5,000 and below will remain free, while those between N5,000 and N50,000 will cost N10. Transactions above N50,000 will attract a fee of N50.
The CBN further emphasised that banks must only apply non-credit charges based on the available account balance and defer any outstanding fees until the account is sufficiently funded.
Additionally, financial institutions are required to inform customers when charges are negotiable, ensuring that customers are aware of their rights at the start of any transaction.
The circular also stated that account reactivation and several routine banking services will remain free. It added that any new charges, products, or services not included in the guide must receive prior approval from the central bank.
The apex bank noted that the revised framework is part of ongoing efforts to strengthen consumer protection, promote fairness, and standardise banking practices across Nigeria’s financial sector.
