CBN: N1,500 new ATM Card issuance fee to enhance innovative financial services, inclusion

*The Central Bank of Nigeria explains the rationale for its review of the Guide to Charges by banks, OFIs, and non-bank Financial Institutions is to fulfill its mandate to promote a safe and sound financial system, accelerate the adoption of innovative financial services, and financial inclusion, among others

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has increased the fee for issuance and replacement of Automated Terminal Machine (ATM) debit/ credit cards from initial N1,000 to N1,500.

The CBN also said it scrapped the N50 monthly charges for Naira Debit/Credit Card maintenance which usually includes 7.5 percent Value-Added Tax (VAT), but noted that customers with Foreign Currency denominated debit/credit cards would continue to pay maintenance fee of $10 per annum.

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Dr. Rita Sike, Director Financial Policy and Regulation Department at CBN, in a circular to Banks, Other Financial Institutions and the public, disclosed this is contained in the Bank’s Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs), in Nigeria 2026.

The Bankers’ Bank also reiterated among other things that the cost of ATM transactions on Merchants PoS will be borne by the Merchant and not the customers.

CBN said: “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. “Merchant Service Charge (MSC) (charge to be borne by the merchant). 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, i.e., the MSC shall be borne by the merchant.

“The MSC payable by a merchant (0.5 percent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.”

The Bankers’ Bank stated that the review of the Guide to Charges by banks, OFIs, and non-bank Financial Institutions is to fulfill its mandate to promote a safe and sound financial system, accelerate the adoption of innovative financial services, financial inclusion and micropayments/transaction.

The circular also noted: “This reviewed Guide provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions.

“Furthermore, the Guide reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodates new industry participants since the issuance of the 2020 Guide.”