The Central Bank of Nigeria (CBN) has eliminated card maintenance fees, instructing banks to stop charging for Naira-denominated debit or credit cards, while ensuring virtual cards stay free.
However, the cost to issue or replace a card has risen from N1,000 to N1,500. According to the apex bank, this price hike is part of a newly updated set of rules for bank charges.
In a document titled ‘Guide to Charges by Banks and Other Financial Institutions’, the CBN noted that these new rates, effective May 1, apply to all standard ATM cards from regulated banks and institutions across the country.
This updated framework replaces the 2020 version and covers everything from commercial banks to mobile money operators. According to the apex bank, “The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system.”
Regarding shopping, the CBN maintained that customers should not be charged for Point-of-Sale (POS) payments; instead, the merchant must cover the service charge. This fee for businesses is set at 0.5 percent of the transaction, with a maximum cap of N10,000.
On the topic of alerts and notifications, the CBN clarified:
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Email alerts: These must remain free of charge.
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SMS alerts: Banks can charge for these only on a cost-recovery basis for transactions started by the customer.
Current account maintenance fees remain negotiable for now but are being phased out. The regulator noted that this fee will be capped at “N0.5 per mille in 2026” before dropping to zero by 2027.
Other specific charges outlined in the circular include:
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ATM Withdrawals: Withdrawing from a different bank’s ATM will cost N100 for every N20,000 at on-site locations. Off-site ATMs might include an extra surcharge of up to N500, though this must be disclosed during the transaction.
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Electronic Transfers: Sending N5,000 or less is free. Transfers between N5,001 and N50,000 cost N10, and anything over N50,000 attracts a N50 charge.
The CBN also emphasized that banks cannot overdraw an account to collect fees, stating: “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.”
Additionally, banks must tell customers when fees are open for discussion.
The CBN noted, “Where a charge is stipulated as ‘negotiable’, financial institutions are required to draw the attention of customers to their rights to negotiate at the beginning of the transactions and subsequently, if the need arises.”
Routine services like reactivating an account will stay free, and banks are prohibited from introducing any new fees without written permission from the regulator. These changes are intended to protect consumers and ensure fair pricing across the Nigerian financial sector.
