CBN Increases ATM Card Issuance Fee to N1,500: What You Need to Know

In a recent update to the Guide to Charges by Banks and Other Financial Institutions (OFIs) for 2026, the Central Bank of Nigeria (CBN) announced a 50% increase in the fee for the issuance and replacement of ATM debit and credit cards, raising it from N1,000 to N1,500.

The new fee structure is part of the CBN’s ongoing effort to revise financial service charges in line with changing economic conditions and evolving financial services in Nigeria.

Along with this hike in card issuance fees, the CBN has also removed the N50 monthly maintenance charge on Naira debit and credit cards, a charge which previously included a 7.5% Value Added Tax (VAT). 

This change is expected to reduce the overall cost for cardholders using Naira-denominated cards. However, customers holding foreign currency-denominated cards will continue to face the $10 annual maintenance fee.

This decision is part of the CBN’s efforts to update the Guide to Charges, which also includes new provisions to better regulate charges across financial services, promote financial inclusion, and streamline micropayment costs.

The revision comes as the bank seeks to further improve the adoption of electronic financial services while maintaining a safe and sound banking system.

Changes to Merchant Fees and Cardholder Charges

An important update within the Guide to Charges concerns ATM transactions at merchant locations. The CBN has stated that the Merchant Service Charge (MSC) for all transactions at Point of Sale (PoS) terminals will no longer be the responsibility of the cardholder. 

Instead, it will be borne by the merchant. The MSC will remain at 0.5% of the transaction amount, capped at N10,000, regardless of the technology or payment method used.

Additionally, card transactions at merchant locations will be free for the cardholder, a move designed to encourage electronic payments and reduce friction for consumers.

CBN’s Vision for a More Inclusive Financial System

In a circular to banks, other financial institutions, and the public, Dr. Rita Sike, Director of the Financial Policy and Regulation Department at the CBN, highlighted that these updates aim to fulfill the bank’s broader mandate: to promote a safe, secure, and innovative financial environment in Nigeria. 

The updated guide seeks to boost financial inclusion, encourage the development of innovative products, and enhance the use of electronic channels for payments and banking.

Dr Sike emphasised that these updates are part of the bank’s commitment to providing accessible financial services while strengthening regulatory oversight, fostering transparency and accountability across the banking sector. 

The new guidelines, she noted, are designed to support the growth of Nigeria’s digital economy and encourage wider adoption of cashless transactions.

Impact of CBN’s Revised Charges

The recent changes by the CBN to ATM card issuance fees and merchant transaction charges highlight a significant shift in Nigeria’s financial landscape.

The increase in card issuance fees and the removal of maintenance charges for Naira cards aim to streamline banking costs while promoting the use of electronic payments. Meanwhile, the shift of the MSC burden to merchants further incentivises consumers to use digital payment methods.

As Nigeria continues to push for a cashless society and improve financial inclusion, these changes mark a step forward in achieving those goals.

By making financial services more accessible and affordable, the CBN is paving the way for greater adoption of digital banking and payments, which will likely have lasting benefits for the country’s economic development.

FAQs

Why did the CBN increase the ATM card issuance fee?

The CBN increased the ATM card issuance fee to N1,500 to adjust to changing financial conditions and to help streamline charges in the banking sector. This increase is part of a broader update to the Guide to Charges aimed at improving banking services.

What happened to the monthly maintenance fee for Naira cards?

The N50 monthly maintenance fee on Naira debit and credit cards has been removed. This change eliminates a recurring cost for customers using Naira cards.

Will foreign currency cards still have maintenance fees?

Yes, customers with foreign currency-denominated cards will continue to pay the $10 annual maintenance fee.

Who is responsible for the Merchant Service Charge (MSC)?

The MSC, which applies to transactions at merchant PoS terminals, will now be borne by the merchant, not the cardholder. This is expected to make card payments more affordable for consumers.

How does this change impact the adoption of digital payments in Nigeria?

By removing some charges and shifting others, these changes are designed to encourage more widespread use of electronic payments, helping to increase financial inclusion and move Nigeria closer to becoming a cashless society.