Revised guidelines aim to boost transparency, protect consumers, and standardise banking costs across Nigeria……
Nigeria’s banking customers will soon pay more for debit and credit cards, following a fresh directive from the Central Bank of Nigeria (CBN) increasing the fee for card issuance and replacement from N1,000 to N1,500.
The new charge, set to take effect from May 1, was announced in a circular released on Thursday as part of an updated framework titled Guide to Charges by Banks and Other Financial Institutions. It applies to standard ATM cards issued by banks and other regulated institutions nationwide.
While card fees are rising, the regulator maintained that customers will not be charged maintenance fees on naira-denominated debit and credit cards. It also confirmed that virtual cards will continue to be issued at no cost.
What’s Changing and What’s Not
The revised guide replaces the previous 2020 framework and covers all institutions under the CBN’s supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
According to the apex bank, the overhaul follows extensive consultations with industry stakeholders and is designed to improve clarity, fairness, and competition within Nigeria’s financial system.
One key relief for customers is that point-of-sale (POS) payments will remain free for users. Instead, merchants will continue to bear the cost through a service charge set at 0.5 percent of transaction value, capped at N10,000.
ATM, Transfers, and Alerts
The CBN also clarified charges tied to everyday banking transactions:
- Withdrawals from another bank’s ATM will cost N100 per N20,000 at on-site machines
- Off-site ATMs may attract an extra surcharge of up to N500 per transaction
- Transfers of N5,000 and below will remain free
- Transfers between N5,000 and N50,000 will cost N10
- Transfers above N50,000 will attract a N50 fee
On transaction alerts, customers may still be billed for SMS notifications but strictly on a cost-recovery basis while email alerts must be provided free of charge.
Gradual Changes to Account Maintenance Fees
For current account holders, the CBN retained maintenance charges but signaled a gradual phase-out. The fee will be capped at N0.5 per mille in 2026 before being completely eliminated by 2027.
Importantly, the regulator stressed that banks can only apply charges based on available account balances, with any unpaid fees deferred until funds are available.
More Transparency, More Consumer Rights
The updated rules also place stronger obligations on financial institutions to inform customers about negotiable charges. Banks must clearly communicate when fees can be discussed or adjusted, both at the start of a transaction and when necessary later.
Additionally, routine services such as account reactivation will remain free, while any new fees or products not listed in the guide must receive prior approval from the CBN.
A Push for Fairer Banking
The central bank says the revised framework is part of a broader effort to protect consumers and bring consistency to banking practices across Nigeria.
With rising costs in some areas and relief in others, the new structure reflects a balancing act, one aimed at ensuring banks remain competitive while customers are shielded from excessive or unclear charges.
