The Central Bank of Nigeria (CBN) has raised the fee for issuing or replacing ATM debit and credit cards to N1,500, a 50 per cent increase from the previous N1,000. This change is part of the CBN's exposure draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) in Nigeria 2026. At the same time, the apex bank has eliminated the N50 monthly maintenance charge on naira-denominated debit and credit cards, which previously included a 7.5 per cent Value Added Tax (VAT). The circular outlining these changes was signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department at the CBN.
Cardholders using foreign currency-denominated cards will still pay an annual maintenance fee of $10. Under the new framework, customers will no longer pay for transactions made at merchants' Point of Sale (PoS) terminals. The Merchant Service Charge (MSC) of 0.5 per cent per transaction, capped at N10,000, will now be fully borne by the merchant. The fee for regular card issuance or replacement is fixed at N1,500, while premium or hybrid cards will have negotiable charges. Virtual cards will be issued free of charge. The CBN stated the revised guidelines aim to strengthen the financial system, promote innovation, expand financial services, and support financial inclusion by reducing barriers to electronic payments.
The CBN raises the cost of physical cards by 50 per cent while removing a small monthly fee, a move that benefits banks more than low-income cardholders. Nigerians who rely on physical cards now face a higher upfront cost, even as the relief on PoS transactions applies only when merchants absorb the charge. The policy shifts the burden from customers to merchants but does nothing to ensure they pass the savings on. For many ordinary users, the N1,500 fee remains a barrier to access.
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