The Central Bank of Nigeria has increased the fee for the issuance and replacement of Automated Teller Machine (ATM) debit and credit cards by 50 per cent, raising the charge from N1,000 to N1,500.
The apex bank also removed the N50 monthly maintenance charge on naira-denominated debit and credit cards, which previously included 7.5 per cent Value Added Tax (VAT).
However, customers using foreign currency denominated debit and credit cards will continue to pay an annual maintenance fee of 10 dollars.
The development was contained in the Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) in Nigeria 2026.
The CBN also reaffirmed that the cost of ATM card transactions carried out on merchants’ Point of Sale (PoS) terminals will be borne by the merchant and not by customers.
According to the draft, “ATM card issuance/replacement charges for regular/basic debit/credit card is N1,500. Charges for Premium Debit/Credit/Hybrid Card are negotiable. Virtual cards at no charge.”
On Merchant Service Charge (MSC), the apex bank stated that cardholders making payments at merchant locations must not be charged directly for such transactions.
It explained that “there shall be no charge to the cardholder paying the merchant. All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, that is, the MSC shall be borne by the merchant.”
The CBN further stated that the Merchant Service Charge payable by a merchant remains 0.5 per cent, subject to a maximum cap of N10,000, regardless of the payment method or technology used.
In a circular addressed to banks, other financial institutions, non-bank financial institutions, and the public, signed by the Director of Financial Policy and Regulation Department, Rita Sike, the bank explained that the review was part of efforts to strengthen Nigeria’s financial system.
According to the circular, the revised guide is aimed at promoting a safe and sound financial system, accelerating the adoption of innovative financial services, deepening financial inclusion, and supporting micropayments and transactions.
The circular stated that the reviewed guide provides for a wider range of financial services, encourages the development of innovative financial products, strengthens oversight responsibilities and accountability, and promotes financial inclusion through lower tariffs for smaller transactions.
It added that some banking service charges were reviewed to encourage greater use of electronic payment channels and to accommodate new participants that have entered the financial industry since the release of the 2020 Guide.
