CBN Hikes ATM Card Fees by 50%, Scraps Maintenance Charges in Sweeping Banking Reform

|By Babatunji Wusu

The Central Bank of Nigeria (CBN) has raised the cost of issuing and replacing ATM cards by 50 per cent, increasing the fee from ₦1,000 to ₦1,500, in a major shake-up of banking charges across the country.

The apex bank, however, scrapped the monthly maintenance fee previously charged on naira-denominated debit and credit cards, offering some relief to customers who had been paying ₦50 monthly, inclusive of Value Added Tax.

Under the revised framework, holders of foreign currency cards will continue to pay an annual maintenance fee of $10, while virtual cards will now be issued at no cost.

The changes were unveiled in the CBN’s exposure draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria 2026, signaling a broader push to modernise the financial system.

In a significant move aimed at protecting consumers, the CBN also shifted the burden of Point of Sale (PoS) charges entirely to merchants, making card payments at shops and business outlets free for customers.

According to the document, all card transactions carried out at merchant locations will attract no charge to the cardholder, as the Merchant Service Charge (MSC) — pegged at 0.5 per cent and capped at ₦10,000 — will be borne solely by merchants, regardless of the payment method used.

In a circular signed by the Director of Financial Policy and Regulation, Rita Sike, the apex bank said the revised policy aims to strengthen the financial system, drive innovation, and expand financial inclusion.

The CBN added that the updated guide introduces a broader range of financial services, encourages the development of innovative banking products, and lowers transaction costs for micropayments to boost the adoption of digital payment channels.

The move comes as Nigeria continues to push for a more cashless economy, with regulators seeking to balance consumer protection with industry growth.