CBN Raises ATM Card Issuance Fee to ₦1,500, Scraps Debit Card Maintenance Charges
- CBN raises ATM card issuance fees to ₦1,500 while abolishing monthly maintenance charges for local cards
- Free virtual cards introduced to promote digital banking, enhancing accessibility for electronic payments
- Merchants now bear PoS transaction costs, encouraging cashless transactions and protecting consumers from extra fees
The Central Bank of Nigeria (CBN) has raised the cost of issuing and replacing Automated Teller Machine (ATM) debit and credit cards to ₦1,500, marking a 50 per cent increase from the previous ₦1,000 fee.
The directive applies to banks across the country, including major lenders such as Access Bank and United Bank for Africa, which are expected to implement the revised charges in line with the regulator’s new guidelines.
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The change forms part of the apex bank’s updated framework governing bank charges and service fees in Nigeria.
Monthly debit card maintenance fee scrapped
In a move likely to offer relief to bank customers, the CBN also abolished the ₦50 monthly maintenance charge previously applied to naira-denominated debit and credit cards.
The fee, which typically included a 7.5 per cent Value Added Tax, had long been a recurring cost for account holders.
However, the regulator clarified that foreign currency-denominated debit and credit cards will still attract an annual maintenance fee of $10, maintaining a distinction between local and international card services.
Free virtual cards, flexible premium card pricing
Under the revised guide, virtual cards will now be issued at no cost to customers, a decision aimed at promoting digital banking and reducing barriers to entry for electronic payments.
Meanwhile, charges for premium debit, credit, or hybrid cards will not be fixed, as banks are allowed to negotiate pricing based on the features and benefits attached to such products.
This introduces a level of flexibility for high-end banking services.
Merchants to bear PoS transaction costs
The CBN reaffirmed that customers will not be charged for transactions carried out at merchant locations using Point-of-Sale (PoS) terminals. Instead, the cost, known as the Merchant Service Charge (MSC), will be borne entirely by merchants.
According to the new framework, the MSC remains set at 0.5 per cent per transaction, subject to a maximum cap of ₦10,000.
The regulator also emphasised that this charge will be uniform, regardless of the payment method or technology used.
This policy is designed to encourage cashless transactions while protecting consumers from additional transaction fees.
New guide targets financial inclusion, 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. The document reflects the regulator’s broader strategy to modernise Nigeria’s financial system.
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 CBN noted that 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 signalling 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.
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CBN announces new transfer and withdrawal fees
Legit.ng earlier reported that the CBN has 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.
The document was signed by R Rita Sike, Director of the Financial Policy and Regulation Department.
Source: Legit.ng
