CBN Raises ATM Card Fee to ₦1,500, Scraps Monthly Maintenance Charges

ATM Card Charges Rise as CBN Abolishes Monthly Maintenance Fees

The Central Bank of Nigeria (CBN) has increased the fee for issuing and replacing ATM cards to ₦1,500 while abolishing the monthly maintenance charge previously applied to naira-denominated cards. The changes form part of the apex bank’s updated Guide to Charges for banks and financial institutions.

Key Changes in Banking Charges

Under the revised framework, the cost of issuing or replacing a standard debit or credit ATM card has been raised from ₦1,000 to ₦1,500, representing a 50 percent increase.

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At the same time, the CBN has scrapped the ₦50 monthly maintenance fee previously charged on naira cards. This fee had also attracted Value Added Tax (VAT) before its removal.

However, foreign currency-denominated cards will continue to attract an annual maintenance fee of $10, maintaining a differentiated structure between local and international card products.

Policy Objectives and Financial System Reform

According to the CBN, the updated charges are part of a broader review of banking fees aimed at modernising Nigeria’s financial system and aligning costs with current market realities.

The framework also seeks to encourage digital payment adoption, improve transparency in fee structures, and support innovation within the financial services sector.

The apex bank has consistently adjusted ATM-related charges in recent years to reflect rising operational costs and evolving payment infrastructure demands across the banking industry.

Implications for Customers and Banks

For customers, the removal of monthly maintenance fees reduces recurring charges linked to card ownership, while the one-time issuance cost increases upfront expenses for new or replacement cards.

Banks, on the other hand, are expected to adjust their fee structures and service models in line with the new regulatory framework. The changes may also influence card usage patterns and digital payment adoption over time.

Sector-Wide Impact

The revision reflects ongoing reforms in Nigeria’s financial services sector aimed at balancing cost recovery for banks with consumer protection and financial inclusion objectives.

As digital banking expands, regulators continue to fine-tune transaction and service charges to ensure sustainability while encouraging broader participation in electronic payment systems.

The CBN’s decision to raise ATM card fees while eliminating monthly maintenance charges represents a significant adjustment in Nigeria’s banking cost structure.

While customers face higher upfront issuance costs, the removal of recurring monthly deductions may ease long-term financial pressure. The policy underscores the regulator’s continued effort to modernise the financial system and streamline banking charges in a rapidly evolving digital economy.

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