By Ahmed Ahmed
The Central Bank of Nigeria (CBN) has increased the fee for the issuance or replacement of debit and credit cards from N1,000 to N1,500, while removing maintenance charges on naira-denominated cards.
The adjustment forms part of a revised regulatory framework titled ‘Guide to Charges by Banks and Other Financial Institutions,’ released recently. The new fee will take effect from May 1 and applies to standard Automated Teller Machine (ATM) cards issued by banks and other regulated financial institutions nationwide.
Under the revised guidelines, the CBN stated that no maintenance fee will be charged on naira-denominated debit or credit cards. It also noted that virtual cards will remain free of charge.
The updated guide replaces the previous version issued in January 2020 and applies to all institutions under the CBN’s regulatory oversight, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
According to the CBN, the revised framework was developed following consultations with stakeholders and is intended to improve transparency, standardisation, and competition within the financial system.
The regulator stated that Point of Sale (POS) payments made by customers to merchants will continue to attract no charges for customers, with the Merchant Service Charge (MSC) to be borne by the merchant. The MSC is set at 0.5 percent of the transaction value, subject to a maximum of N10,000 per transaction, irrespective of the payment channel.
On transaction notifications, the CBN said financial institutions may charge for Short Message Service (SMS) alerts on customer-initiated transactions strictly on a cost-recovery basis, while electronic mail alerts must be provided at no cost.
The framework also retains provisions on account maintenance charges for current accounts. The CBN stated that such charges remain negotiable but are subject to a capped rate, with a phased reduction structure. Under this structure, the current account maintenance fee will be limited to N0.5 per mille in 2026 and reduced to zero by 2027.
For ATM withdrawals from another bank’s network, the guide provides that customers will be charged N100 per N20,000 withdrawal at on-site ATMs. Withdrawals at off-site ATMs may attract an additional surcharge of up to N500 per transaction, subject to disclosure at the point of withdrawal.
The CBN also outlined charges for electronic transfers. Transfers of N5,000 and below will remain free, transfers between N5,000 and N50,000 will attract a charge of N10, while transfers above N50,000 will cost N50.
The regulator stated that, in line with existing Consumer Protection Regulations, financial institutions are required to apply non-credit related charges only to the extent of available account balances and defer any outstanding charges until the account is funded.
It also directed financial institutions to inform customers where charges are negotiable. According to the CBN, institutions must draw customers’ attention to their right to negotiate such charges at the commencement of transactions and when necessary.
The circular further indicated that account reactivation and certain routine account services will remain free. It added that any new fee, product, or service not included in the guide must receive prior written approval from the CBN.
The CBN stated that the revised framework is part of ongoing efforts to strengthen consumer protection, standardise banking practices, and ensure fairness in the pricing of financial services.
The CBN said that the revised framework forms part of broader efforts to strengthen consumer protection, standardise banking practices, and ensure fairness in the pricing of financial services nationwide.
