CBN Raises Debit, Credit Card Issuance Fee To N1,500

The Central Bank of Nigeria (CBN) has increased the fee for the issuance and replacement of debit and credit cards from N1,000 to N1,500, as part of a broader review of banking charges across the financial system.

The adjustment was contained in a revised Guide to Charges by Banks and Other Financial Institutions released on Thursday, which takes effect from May 1 and applies to standard ATM cards issued by banks and other regulated financial institutions nationwide.

The apex bank said the updated framework replaces the previous 2020 guidelines and is designed to enhance transparency, standardisation and competition in the financial sector.

“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the CBN stated.

The regulator clarified that while the issuance fee has been reviewed upward, no maintenance charges will apply to naira-denominated debit or credit cards, adding that virtual cards will remain free of charge.

The new rules apply to all institutions under its regulation, including commercial banks, microfinance banks, payment service banks and mobile money operators.

Under the revised structure, the CBN also maintained that point-of-sale (POS) transactions for customers remain free, stressing that merchants are responsible for the applicable charges.

It fixed the merchant service charge at 0.5 per cent of transaction value, capped at N10,000, regardless of the payment method.

On transaction alerts, the apex bank said SMS notifications may still attract charges on a cost-recovery basis, while email alerts must be provided free of charge.

The CBN further retained provisions on current account maintenance fees, stating that charges remained negotiable but subject to a capped rate, with a phased reduction expected to zero by 2027.

For ATM withdrawals, the guide stipulates that customers using 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, subject to disclosure.

Electronic transfers of N5,000 and below remain free, while transfers between N5,000 and N50,000 will attract a N10 charge, and transactions above N50,000 will cost N50.

The apex bank also directed financial institutions to inform customers where charges are negotiable, and to clearly disclose such rights at the point of transaction.

It added that any new fee, product or service not captured in the guide must receive prior approval before implementation.

The CBN said the revised framework was part of efforts to strengthen consumer protection and ensure fairness and uniformity in the pricing of financial services nationwide.