CBN Raises ATM Card Fee to N1,500 and Abolishes Monthly Maintenance Charge

The Central Bank of Nigeria has announced a 50 percent increase in the fee for issuing and replacing ATM debit and credit cards, raising the charge from 1,000 naira to 1,500 naira effective from the first of May 2026. The change, contained in the apex bank's Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria 2026, comes alongside the abolition of the 50 naira monthly maintenance charge that naira-denominated cardholders have been paying for years.

The circular was signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department at the CBN, and applies to all financial institutions under the central bank's supervision including commercial banks, microfinance banks, payment service banks, and mobile money operators across Nigeria.

What Changes and What Does Not

For the average Nigerian bank customer, the most immediate practical change is straightforward. The next time you need a new ATM card, whether because your current card has expired, been lost, stolen, or damaged, your bank will charge you 1,500 naira instead of the previous 1,000 naira. That extra 500 naira applies to standard debit and credit ATM cards issued across all participating institutions.

Premium and hybrid cards, which are typically associated with higher-tier bank accounts, will continue to have their fees set through negotiation between the customer and the bank rather than at a fixed rate. Virtual cards, which have become increasingly popular among Nigerians who primarily transact online and through mobile banking applications, remain completely free of charge under the revised framework.

The abolition of the monthly 50 naira maintenance charge, which previously included 7.5 percent Value Added Tax, is a meaningful concession to cardholders who found the recurring deduction frustrating even if the absolute amount was small. Over a full year, that monthly charge accumulated to 600 naira per cardholder. Its removal provides modest but genuine financial relief for millions of Nigerian bank customers.

For customers who hold foreign currency denominated debit and credit cards, the annual maintenance fee of 10 US dollars per year remains unchanged. Only naira-denominated cards benefit from the elimination of the maintenance charge.

POS Transactions: Customers Protected

The CBN has reiterated clearly in the new framework that customers making payments at merchant Point of Sale terminals must not be charged extra for using their cards. The Merchant Service Charge, set at 0.5 percent of the transaction value with a maximum cap of 10,000 naira, is entirely the responsibility of the merchant receiving the payment, not the customer making it.

This clarification addresses a widespread and persistent problem across Nigeria where shop owners, filling stations, and other merchants frequently pass POS charges onto customers illegally. The CBN's explicit restatement of the rule should strengthen consumers' ability to push back against such practices.

Other Key Changes in the 2026 Banking Charges Guide

Customers using another bank's ATM will pay 100 naira per 20,000 naira withdrawn at on-site ATM machines. Off-site ATMs may attract an additional surcharge of up to 500 naira per transaction, but banks are required to disclose this charge clearly before the withdrawal is completed. Email transaction alerts must be provided at no cost to customers, while SMS alerts may continue to attract charges at actual cost. Account reactivation fees have been removed entirely and will no longer apply. Current account maintenance fees are being phased toward zero, with a reduction to 0.5 naira per mille in 2026 and a complete elimination targeted for 2027.

Why the CBN Says the Changes Are Necessary

The apex bank framed the revised charges guide as part of a broader modernisation effort designed to accelerate electronic payment adoption, deepen financial inclusion across Nigeria's large unbanked population, and create a more transparent and predictable fee structure that consumers can easily understand and challenge when necessary. The guide replaces the previous framework issued in January 2020 and reflects significant changes in Nigeria's financial technology landscape over the intervening six years.