The Central Bank of Nigeria (CBN) has announced an increase in the fee for issuing or replacing debit and credit cards, raising the charge from N1,000 to N1,500. The development forms part of a newly revised guide to bank charges aimed at standardising costs across the country’s financial system.
In a circular issued on Thursday the apex bank confirmed that the new fee will take effect from 1 May. Zebra News understands that the charge applies specifically to standard ATM cards issued by banks and other regulated financial institutions nationwide.
According to the document, titled ‘Guide to Charges by Banks and Other Financial Institutions’, the updated framework replaces the previous guidelines introduced in January 2020. It applies broadly to all institutions under the CBN’s regulatory scope, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
Unfortunately despite the increase in card issuance fees, the regulator has maintained that no maintenance charges will apply to naira-denominated debit or credit cards. Virtual cards will also remain free of charge, offering some relief to customers amid the adjustments.
The CBN stated that the revised guide was developed following consultations with stakeholders and is designed to improve transparency, competition, and consistency in banking charges. “The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the bank said.
Under the updated structure, Zebra News notes that point-of-sale (POS) payments made by customers will remain free, with merchants continuing to bear the associated service charges. Businesses will be required to pay a merchant service charge of 0.5 per cent per transaction, capped at N10,000, regardless of the payment channel used.
The circular also addresses transaction alerts, stating that banks may charge customers for mandatory SMS notifications on a cost-recovery basis, while email alerts must be provided free of charge.
Report further had it that current account maintenance fees will remain in place but subject to a gradual reduction. The fee is capped at N0.5 per mille in 2026 and is expected to be completely eliminated by 2027.
Additional charges outlined in the guide include ATM withdrawal fees. Customers using another bank’s ATM will pay N100 for every N20,000 withdrawn at on-site machines, while off-site withdrawals may incur an extra surcharge of up to N500 per transaction, subject to disclosure at the point of use.
Electronic transfer fees remain tiered under the revised framework. Transfers of N5,000 and below will continue to be free, while transactions between N5,000 and N50,000 will attract a N10 fee. Transfers exceeding N50,000 will incur a charge of N50.
The CBN also emphasised consumer protection provisions, stating that financial institutions must not apply non-credit related charges beyond the available balance in a customer’s account. Any outstanding fees must be deferred until sufficient funds are available.
With this banks are now required to clearly inform customers whenever charges are negotiable, ensuring greater transparency at the start of transactions and throughout the banking relationship.
The regulator added that account reactivation and several routine services will remain free. It also stressed that any new fees, products, or services not listed in the guide must receive prior written approval from the central bank.
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