The Central Bank of Nigeria (CBN) has announced significant changes to banking charges, providing relief to millions of customers by scrapping card maintenance fees and making several routine banking services free of charge.
Revised Guide to Charges
Under the updated Guide to Charges by Banks and Other Financial Institutions, banks are no longer permitted to charge maintenance fees on naira-denominated debit and credit cards. The apex bank also confirmed that virtual cards will remain free for customers. However, the cost of issuing or replacing debit and credit cards has been increased from N1,000 to N1,500.
Effective Date and Scope
The new directive took effect on May 1, 2026, and applies to standard ATM cards issued by banks and other regulated financial institutions across Nigeria. The framework replaces previous guidelines issued in January 2020 and covers all financial institutions under CBN supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
Objectives of the Revised Framework
The CBN stated that the revised guide aims to improve flexibility, transparency, standardisation, and healthy competition within Nigeria’s financial system. The regulator emphasised that the framework is part of broader efforts to strengthen consumer protection, promote fairness, and prevent excessive or hidden banking charges.
Free POS Payments and Merchant Charges
Point-of-sale (POS) payments made by customers to merchants will remain free. Instead, merchants are expected to bear 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 Free, SMS Alerts Cost-Based
In another customer-friendly move, the CBN 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. Customers who prefer email notifications can continue to enjoy the service without additional 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, though with a clear plan to phase them out. The regulator stated that current account maintenance fees will remain negotiable but within an approved cap. The charge will be limited to N0.5 per mille in 2026 before being completely eliminated by 2027, reducing the cost burden on businesses and individuals.
ATM Withdrawal and Transfer Charges
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 in malls, fuel stations, and public places, an additional surcharge of up to N500 per transaction may apply, but 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.
Free Routine Banking Services
The CBN maintained that account reactivation and several routine account services will remain free. Financial institutions are directed to clearly inform customers whenever a charge is negotiable. Any new banking fee, product, or service not listed in the official guide must receive written approval from the CBN before implementation.
The revised framework is part of the CBN’s broader efforts to strengthen consumer protection, promote fairness, and ensure Nigerians are not subjected to excessive or hidden banking charges.
