In a significant update to the nation’s financial regulations, the Central Bank of Nigeria (CBN) has increased the issuance and replacement fee for Automated Teller Machine (ATM) cards from N1,000 to N1,500. This 50% hike was detailed in the apex bank’s “Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria 2026.” According to the CBN, while regular and basic debit or credit cards now carry this higher upfront cost, charges for premium or hybrid cards remain negotiable, and virtual cards are to be issued at no charge to the customer.
To balance the increased card issuance costs, the CBN has officially scrapped the N50 monthly maintenance fee previously charged on Naira-denominated debit and credit cards. This removal also eliminates the associated 7.5% Value Added Tax (VAT) typically bundled with the fee. However, the bank clarified that this relief does not extend to foreign currency-denominated cards, stating: “Customers with Foreign Currency denominated debit/credit cards will continue to pay a maintenance fee of $10 per annum.”
The regulator further reinforced consumer protection by mandating that transaction costs at Merchant Point of Sale (PoS) terminals must not be passed on to the cardholder. The CBN was explicit in its directive, noting: “All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e., the Merchant Service Charge (MSC) shall be borne by the merchant.” This MSC is capped at 0.5% of the transaction value, with a maximum ceiling of N10,000, regardless of the payment technology used.
Signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the circular emphasized that these reviews are aimed at accelerating financial inclusion and encouraging the use of electronic channels. Dr. Sike explained that the updated guide “provides for an increased range of financial services, encourages development of innovative products and promotes financial inclusion through lower tariffs for micropayments.” The apex bank maintains that these adjustments are necessary to align with the evolving financial landscape and accommodate new industry participants since the last major guide revision.
