The Central Bank of Nigeria (CBN) has officially confirmed an upward review of the ATM card issuance fee, impacting both debit and credit card services across the nation.
This significant adjustment is a key feature of the latest financial regulation updates intended to standardise how banking institutions operate. Effective from May 1, customers seeking to obtain or replace their standard cards will now pay N1,500, marking a shift from the previous N1,000 charge.
This directive is part of a newly released circular titled ‘Guide to Charges by Banks and Other Financial Institutions’. It replaces the guidelines that have been in place since January 2020. The mandate applies to a broad spectrum of regulated entities, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
Strategic Impact of Revised CBN Bank Charges
The regulator explained that this new guide was developed following extensive consultations with various industry stakeholders. The goal is to strengthen transparency and improve standardisation of charges across the Nigerian financial system.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.
While the cost for physical cards has risen, the regulator provided relief in other areas. The CBN confirmed that no maintenance fee will be applied to naira-denominated debit cards or credit cards moving forward. Furthermore, the bank noted that virtual cards will remain entirely free of charge for customers, encouraging a continued transition toward digital banking solutions.
Updates on POS Transactions and Account Fees
The revised framework also clarifies the rules regarding point-of-sale (POS) payments. The CBN stated that payments made by customers to merchants will remain free. The merchant, rather than the customer, is required to bear the merchant service charge.
The guide stipulates that the merchant service charge for businesses will be 0.5 per cent of the transaction value. This is subject to a maximum of N10,000, regardless of the payment method used by the consumer.
Regarding transaction notifications, the regulator noted that customers may still be charged for mandatory SMS alerts on customer-initiated transactions. However, banks must ensure these charges are applied only on a cost-recovery basis. In contrast, email alerts must be provided to customers at no cost.
The regulator also addressed the ongoing oversight of account maintenance charges for current accounts.
The CBN stated that the fee remains negotiable between the bank and the client, though it is subject to a capped rate, with a phased reduction already outlined in the new documentation.
These adjustments represent a broad effort to balance institutional revenue needs with consumer protection in the evolving digital economy.
