The Central Bank of Nigeria (CBN) has moved to significantly raise the cost of obtaining an ATM card, a change that arrives at a time when many households are already grappling with the pressures of a tough economic climate.
The apex bank has increased the fee for the issuance and replacement of ATM debit and credit cards by 50 percent, moving the charge from N1,000 to N1,500. The directive was contained in what is shaping up to be one of the most consequential banking policy documents of the year.
The CBN disclosed this in its exposure draft of the Guide to Charges by Banks and Other Financial Institutions (OFIs) in Nigeria 2026, a circular signed by the Director of the Financial Policy and Regulation Department, Dr. Rita Sike.
The announcement is not without its silver lining. In what appears to be a calculated balancing act, the apex bank also scrapped the N50 monthly charges for Naira debit and credit card maintenance, a fee that typically included 7.5 percent Value Added Tax.
For many low-income earners and entry-level account holders, this recurring monthly deduction had been a quiet but persistent drain.
However, those holding foreign currency cards are not entirely off the hook. Customers with foreign currency-denominated debit or credit cards will continue to pay a maintenance fee of $10 per annum.
For customers looking to go entirely digital, there is a notable carrot on offer: virtual cards will be issued at no charge. The move is seen as part of the regulator’s broader push to migrate more Nigerians away from physical card dependency and towards digital financial services.
On the premium end of the market, charges for premium debit, credit, and hybrid cards will be negotiable — leaving room for banks and high-net-worth clients to determine their own terms.
The CBN has been unambiguous about the intent behind the revised framework. In a circular signed by the Director of Financial Policy and Regulation, Dr. Rita Sike, the CBN said the review was part of broader efforts to strengthen Nigeria’s financial system, deepen financial inclusion, and accelerate the shift to digital payment channels.
The bank stated that the reviewed guide provides for an increased range of financial services, encourages the development of innovative products, strengthens responsibility for oversight and accountability, and promotes financial inclusion through lower tariffs for micropayments and transactions.
The move is also expected to encourage the adoption of electronic payment platforms by reducing costs on micropayments and aligning charges with evolving industry dynamics.
Beyond the card issuance changes, the CBN used the same policy document to restate a position that has at times been contested in Nigeria’s bustling informal retail sector. The bank reiterated that all card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, meaning the Merchant Service Charge (MSC) shall be borne by the merchant.
The MSC payable by a merchant, set at 0.5 per cent and subject to a cap of N10,000, shall remain the same irrespective of the technology or payment method used. This provision, if enforced consistently, could bring relief to millions of Nigerians who have long complained of being double-charged at POS terminals, a practice that has flourished in the absence of strict enforcement.
The latest hike does not exist in a vacuum. It follows a broader trend of the CBN revising banking charges upward in response to rising operational costs across the financial sector.
As recently as February 2025, the CBN announced new ATM transaction fees that marked the first change in withdrawal charges since 2019, when the apex bank had actually reduced fees from N65 to N35. That earlier reduction now seems like a distant memory, as the pendulum has swung firmly in the other direction.
The CBN noted that the 2026 guide was necessary to accommodate new industry participants and encourage increased adoption of electronic channels since the last comprehensive guide was issued in 2020.
For the average Nigerian walking into a bank to request a new or replacement card, whether due to loss, expiry, or damage, the arithmetic is straightforward and unforgiving: the cost has gone up by N500.
Consumer rights advocates are likely to scrutinize the new directive carefully. It is worth recalling that when the CBN raised ATM transaction fees in early 2025, the Socio-Economic Rights and Accountability Project (SERAP) warned that imposing exorbitant fees on socially and economically vulnerable Nigerians, at a time several Nigerian banks are declaring trillions of naira in profits yearly, was manifestly unfair, unreasonable, and unjust. Similar voices are expected to weigh in on this latest development.
For now, the policy remains at the exposure draft stage, meaning the public and stakeholders have an opportunity to engage with the CBN before the guidelines are finalized and enforced.
WHAT YOU SHOULD KNOW
The CBN has raised the ATM card issuance fee by 50% to N1,500, meaning every Nigerian who needs a new or replacement debit card will pay more. The trade-off is the scrapping of the N50 monthly maintenance charge on Naira cards, and virtual cards will now be issued free of charge.
While the CBN frames this as a move to modernize Nigeria’s financial system and push digital adoption, the immediate reality for millions of everyday Nigerians is simple: accessing a physical bank card just got more expensive.
