CBN Scraps Card Maintenance Fees, Makes Email Alerts Free as 4 New Banking Charges Take Effect
- CBN eliminates card maintenance fees, benefiting millions of banking customers in Nigeria
- New charges framework enhances competition and transparency across financial institutions
- Plans to phase out current account maintenance fees by 2027 are ensured for customer relief
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria has announced fresh changes to banking charges, bringing relief to millions of customers by scrapping card maintenance fees and making more routine banking services free.
Under the revised Guide to Charges by Banks and Other Financial Institutions, banks are no longer allowed to charge maintenance fees on naira-denominated debit and credit cards. The apex bank also confirmed that virtual cards will remain free for customers.
Source: Twitter
However, while some charges have been removed, the cost of issuing or replacing debit and credit cards has been increased from N1,000 to N1,500.
The new directive took effect from May 1 and applies to standard ATM cards issued by banks and other regulated financial institutions across Nigeria.
New banking charges framework begins
According to the CBN, the updated framework replaces the previous guidelines issued in January 2020 and covers all financial institutions under its supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
The regulator said the revised guide is aimed at improving flexibility, transparency, standardisation, and healthy competition within Nigeria’s financial system.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank stated.
The CBN also clarified that point-of-sale (POS) payments made by customers to merchants will remain free. Instead, merchants are expected to bear the merchant service charge.
Under the revised structure, businesses will pay a merchant service charge of 0.5 per cent of the transaction value, subject to a maximum of N10,000, regardless of the payment method used.
Email alerts must remain free
In another customer-friendly move, the apex bank directed that email transaction alerts must be provided free of charge.
However, mandatory SMS transaction alerts will still attract charges, but only on a cost-recovery basis, meaning banks cannot profit from such deductions.
This means customers who prefer email notifications for transactions can continue to enjoy the service without any additional banking costs.
Current account maintenance fees to end by 2027
While savings account holders benefit from the removal of card maintenance charges, the CBN retained account maintenance charges for current accounts, although with a clear plan to phase them out.
The regulator stated that current account maintenance fees will remain negotiable but must stay within an approved cap.
It added that the charge will be limited to N0.5 per mille in 2026 before being completely reduced to zero by 2027.
This gradual removal is expected to reduce the cost burden on businesses and individuals operating current accounts.
ATM withdrawals and transfer charges explained
The circular also outlined ATM withdrawal charges for customers using another bank’s ATM.
Customers withdrawing cash from another bank’s ATM will pay N100 for every N20,000 withdrawn at on-site ATM locations.
For off-site ATMs, such as those located in malls, fuel stations, and public places, an additional surcharge of up to N500 per transaction may apply. However, customers must be informed before the withdrawal is completed.
Electronic transfers of N5,000 and below will remain free.
Transfers between N5,000 and N50,000 will attract a N10 fee, while transfers above N50,000 will cost N50.
More free routine banking services
The CBN also maintained that account reactivation and several routine account services will remain free of charge.
It further directed financial institutions to clearly inform customers whenever a charge is negotiable.
According to the regulator, any new banking fee, product, or service not listed in the official guide must first receive written approval from the CBN before implementation.
Source: Getty Images
The apex bank said the revised framework is part of broader efforts to strengthen consumer protection, promote fairness, and ensure Nigerians are not subjected to excessive or hidden banking charges.
CBN alerts public on fraudsters' new method
Legit.ng earlier reported that the CBN has issued a strong warning to Nigerians over the circulation of fraudulent messages, emails, and online communications falsely claiming to originate from or be associated with the apex bank. In a statement issued on Wednesday, April 22, signed by Hakama Sidi Ali (Mrs.),
Acting Director, Corporate Communication, the apex bank, said the latest alerts are aimed at protecting members of the public.
The CBN noted that the cybercriminals are now using deceptive messages to spread misinformation and gain access to personal and financial accounts, and has advised the public to be vigilant.
Source: Legit.ng
