The Central Bank of Nigeria has increased the fee for issuing or replacing debit and credit cards from N1,000 to N1,500 as part of a revised framework governing bank charges.
New Fee Structure
In a circular released on Thursday, April 23, titled Guide to Charges by Banks and Other Financial Institutions, the apex bank stated that the new fee will take effect from May 1 and apply to standard ATM cards issued by banks and other regulated institutions nationwide.
The CBN clarified that no maintenance fee will be charged on naira-denominated debit or credit cards, while virtual cards will remain free. The updated guide replaces the previous framework issued in January 2020 and applies to all institutions under the regulator’s supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
Stakeholder Consultations
According to the CBN, the revised framework was developed following consultations with stakeholders and is aimed at improving transparency and consistency in the financial system. “The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the regulator said.
Other Key Changes
Under the new structure, point-of-sale payments will remain free for customers, with merchants bearing the cost through a merchant service charge set at 0.5 per cent of transaction value, capped at N10,000.
On transaction alerts, the CBN said customers may still be charged for SMS notifications on a cost-recovery basis, while email alerts must be provided at no cost.
Account Maintenance Charges
The regulator also outlined changes to account maintenance charges, stating that fees for current accounts will remain negotiable but capped, with a phased reduction to N0.5 per mille in 2026 and a full elimination by 2027.
ATM Withdrawal Fees
For ATM withdrawals, customers using another bank’s machine will be charged N100 per N20,000 withdrawal at on-site locations, while off-site ATMs may attract an additional surcharge of up to N500 per transaction, subject to disclosure at the point of use.
Electronic Transfer Fees
Electronic transfer fees were also reaffirmed, with transactions of N5,000 and below remaining free, transfers between N5,000 and N50,000 attracting a N10 charge, and transfers above N50,000 costing N50.
Consumer Protection Measures
The CBN further directed that financial institutions must not apply non-credit related charges beyond the available balance in a customer’s account and must defer such charges until the account is funded.
It also instructed banks to inform customers when charges are negotiable. “Where a charge is stipulated as ‘negotiable’, financial institutions are required to draw the attention of customers to their rights to negotiate at the beginning of the transactions,” the CBN said.
Free Services
The circular added that account reactivation and certain routine services will remain free, and that any new charges or financial products not listed in the guide must receive prior approval from the central bank.
The regulator said the revised framework is part of broader efforts to strengthen consumer protection, standardise banking practices, and ensure fair pricing across Nigeria’s financial sector.
