The Central Bank of Nigeria has raised the cost of obtaining an ATM card, requiring Nigerians to pay an additional N500 for new or replacement cards. Under the revised charges, the fee for ATM card issuance has increased from N1,000 to N1,500, representing a 50 percent rise. The new directive is part of an updated guide to bank charges released by the apex bank.
New Fee Structure
The adjustment applies to customers requesting new debit cards as well as those replacing expired, lost, or damaged cards. Banks across the country are expected to implement the new pricing immediately in line with the regulatory directive. This latest increase reflects how ATM card pricing in Nigeria has evolved over time. When ATM cards were first introduced, they were often issued free of charge by banks as incentives to attract new customers and promote electronic banking adoption. Over the years, banks gradually introduced fees, with charges at one point as low as N500 before rising in stages to current levels.
Removal of Maintenance Charges
Despite the increase, the CBN also introduced measures aimed at reducing other banking costs for customers. Notably, the apex bank has scrapped the monthly ATM card maintenance fee previously charged on naira-denominated cards. This move is expected to provide some relief to customers who previously paid recurring charges to keep their cards active. In addition, the CBN stated that customers will no longer be charged for using their debit cards at point-of-sale (POS) terminals. Instead, the cost burden will be shifted to merchants, a move designed to encourage the use of digital payment channels.
Broader Economic Context
The policy shift comes amid broader efforts by the CBN to promote a cashless economy and expand financial inclusion across the country. By removing certain transaction charges, the regulator aims to make electronic payments more attractive to Nigerians. However, the increase in card issuance fees is likely to be felt immediately, especially by new bank customers and those needing replacements. For many Nigerians already dealing with rising living costs, the higher upfront cost may add to financial pressure. The latest changes reflect a balancing act by the CBN: raising certain charges while eliminating others, as it continues to adjust policies within Nigeria's evolving financial landscape.
