CBN raises ATM card issuance fee to N1,500, scraps N50 monthly maintenance charge

The Central Bank of Nigeria (CBN) has increased the fee for the issuance and replacement of Automated Teller Machine (ATM) debit and credit cards by 50 per cent, raising the cost from N1,000 to N1,500.

At the same time, the apex bank announced the removal of the N50 monthly maintenance charge previously imposed on Naira-denominated debit and credit cards — a fee that typically attracted an additional 7.5 per cent Value Added Tax (VAT).

However, customers with foreign currency-denominated debit or credit cards will continue to pay an annual maintenance fee of $10.

The new directives are contained in the CBN’s Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) in Nigeria 2026, which outlines revised service charges across the banking sector.

According to the draft document, the approved charge for issuance or replacement of regular/basic debit or credit cards is now N1,500. Charges for premium debit, credit, or hybrid cards are to be determined on a negotiable basis between banks and customers. The CBN also stated that virtual cards will be issued at no cost.

On Merchant Service Charges (MSC), the apex bank reaffirmed that the cost of ATM or card transactions carried out at merchants’ Point of Sale (PoS) terminals will be borne entirely by the merchant and not the cardholder.

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“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant,” the draft stated.

The Merchant Service Charge payable by merchants is pegged at 0.5 per cent per transaction, subject to a maximum cap of N10,000. The rate remains uniform regardless of the payment technology or channel used.

In a circular addressed to banks, Other Financial Institutions (OFIs), non-bank financial institutions and the general public, the Director of the Financial Policy and Regulation Department at the CBN, Dr. Rita Sike, explained that the review of the Guide to Charges is aimed at strengthening the financial system and promoting innovation.

According to the circular, the revised framework seeks to promote a safe and sound financial system, accelerate the adoption of innovative financial services, deepen financial inclusion, and encourage micropayments and digital transactions.

The CBN stated that the updated guide expands the range of financial services, supports the development of innovative banking products, enhances regulatory oversight and accountability, and introduces lower tariffs for micropayments to drive inclusion.

It also noted that some charges were reviewed to encourage greater adoption of electronic banking channels and to accommodate new industry participants since the release of the 2020 edition of the Guide.

The changes are expected to impact millions of bank customers nationwide, particularly those seeking new or replacement ATM cards, while offering relief through the removal of monthly maintenance fees on Naira cards.