What CBN’s new ATM fee increase means for Bank customers

The Central Bank of Nigeria (CBN) has approved an increase in the cost of issuing and replacing Automated Teller Machine (ATM) debit and credit cards to N1,500, up from the previous N1,000, representing a 50 per cent hike.

The apex bank also abolished the N50 monthly maintenance fee previously charged on Naira debit and credit cards, a fee that typically included Value Added Tax. However, customers using foreign currency-denominated cards will continue to pay an annual maintenance fee of $10.

The policy changes were contained in the CBN’s exposure draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria (2026), which outlines revised fees across the financial sector.

Under the new framework, the CBN also clarified that all ATM transactions conducted at merchant Point of Sale (PoS) terminals will no longer attract charges for customers, as such fees will now be borne entirely by merchants.

According to the guideline, merchant service charges will remain at 0.5 per cent per transaction, subject to a maximum cap of N10,000, regardless of the payment channel or technology used.

“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder,” the document stated.

The CBN explained that the review is aimed at strengthening Nigeria’s financial system, promoting innovation, and encouraging greater adoption of electronic payment channels, while also supporting financial inclusion and micropayment systems.

The circular, signed by the Director of Financial Policy and Regulation Department, Dr. Rita Sike, noted that the revised framework introduces new financial services, accommodates emerging industry players, and adjusts certain charges to reflect current economic realities.

It added that the new guide is part of ongoing efforts to modernise banking operations and ensure a safer, more efficient financial ecosystem in Nigeria.