The Central Bank of Nigeria has scrapped card maintenance fees, directing banks not to charge any maintenance fee on naira-denominated debit or credit cards, while virtual cards will remain free.
The CBN also increased the fee for the issuance or replacement of debit and credit cards from N1,000 to N1,500.
The upward adjustment according to the apex bank is part of a revised guide to bank charges for financial institutions.
In a circular released titled ‘Guide to Charges by Banks and Other Financial Institutions’, the apex bank said the fee, which takes effect from May 1, applies to standard ATM cards issued by banks and other regulated institutions nationwide.
The revised framework is an upgrade of the previous guidelines issued in January 2020 and applies to all financial institutions regulated by the CBN, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.
Under the revised schedule, the apex bank direct point-of-sale (POS) payments made by customers to merchants will remain free, noting that the merchant — not the customer — is required to bear the merchant service charge.
The guide also stipulates that the merchant service charge payable by businesses will be 0.5 percent of the transaction value, subject to a maximum of N10,000, regardless of the payment method used.
Email alerts to remain free
On transaction notifications, the CBN said customers could still be charged for mandatory SMS alerts on customer-initiated transactions, but only on a cost-recovery basis, while email alerts must be provided at no cost.
The CBN however retained provisions on account maintenance charges for current accounts, stating that the fee remains negotiable but subject to a capped rate, with a phased reduction already on course.
Also, the regulator said the current account maintenance fee will be limited to “N0.5 per mille in 2026”, before being reduced to zero by 2027.
N100 fee for each N20,000 ATM
In addition, the circular stated that customers withdrawing from another bank’s ATM will pay N100 per N20,000 withdrawal at on-site locations, while off-site ATMs may attract an additional surcharge of up to N500 per transaction.
It will however be subject to disclosure at the point of withdrawal.
Also, electronic transfers of N5,000 and below will remain free, while transfers between N5,000 and N50,000 will attract a charge of N10, and transfers above N50,000 will cost N50.
“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,” the document reads.
The apex bank also directed financial institutions to inform customers whenever charges are negotiable.
“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,” the CBN said.
In addition, the circular said account reactivation and certain routine account services will remain free of charge, noting that any new fee, product, or service not listed in the guide must receive prior written approval from the central bank.
The CBN said the revised framework forms part of broader efforts to strengthen consumer protection, standardise banking practices, and ensure fairness in the pricing of financial services nationwide.
