CBN Scraps Card Maintenance Fees, Raises ATM Card Charges in New Banking GuidelinesBy Philip Shimnom Clement
Mon, 4 May 2026 4:10:16 WATThe Central Bank of Nigeria has directed banks to stop charging maintenance fees on naira-denominated debit and credit cards, while raising the cost of issuing or replacing physical cards to ₦1,500.The changes are contained in the CBN’s revised Guide to Charges by Banks and Other Financial Institutions, released in a circular that takes effect May 1, 2026. The updated framework replaces the January 2020 guidelines and applies to all CBN-regulated entities, including commercial banks, microfinance banks, payment service banks, and mobile money operators.“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.Key changes in the new guidelines:1. Card fees Maintenance fees on naira debit and credit cards have been scrapped. Virtual cards remain free of charge. Fees for issuance or replacement of physical ATM cards increased from ₦1,000 to ₦1,500.2. POS transactions Payments made by customers to merchants via POS remain free. Merchants will bear the merchant service charge of 0.5% of the transaction value, capped at ₦10,000, regardless of payment method.3. Transaction alerts Mandatory SMS alerts on customer-initiated transactions may still attract charges, but only on a cost-recovery basis. Email alerts must be provided free.4. Account maintenance Current account maintenance fees remain negotiable but capped. The fee will be limited to ₦0.50 per mille in 2026 and reduced to zero by 2027.5. ATM withdrawals Using another bank’s on-site ATM attracts ₦100 per ₦20,000 withdrawal. Off-site ATMs may charge an additional surcharge of up to ₦500 per transaction, provided it is disclosed at the point of withdrawal.6. Electronic transfers Transfers of ₦5,000 and below remain free. Transfers between ₦5,000 and ₦50,000 attract ₦10. Transfers above ₦50,000 cost ₦50.The CBN also restated that account reactivation and certain routine services must remain free. Any new fee, product, or service not listed in the guide requires prior written approval from the regulator.“In line with the provisions of the extant Consumer Protection Regulations, financial institutions shall apply non-credit related charges on an account only to the extent of the balance in the account and defer any outstanding charge until the account is funded,” the circular said.Where a charge is listed as “negotiable,” banks must inform customers of their right to negotiate at the start of a transaction and subsequently if needed.The CBN said the revisions are part of broader efforts to strengthen consumer protection, standardise banking practices, and ensure fairness in the pricing of financial services nationwide.
