The Central Bank of Nigeria (CBN) has implemented a significant overhaul of banking charges, outlined in its revised “Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026”. This comprehensive update aims to strengthen the financial system, foster innovation, enhance transparency, standardize charges, promote competition, and drive financial inclusion across the nation.

A key adjustment involves the cost of issuing and replacing Automated Teller Machine (ATM) debit and credit cards. The fee for standard ATM cards has been increased by 50 percent, rising from N1,000 to N1,500. This change takes effect from May 1 and applies to regular/basic debit and credit cards. Conversely, the CBN has eliminated the monthly maintenance charge of N50 on naira-denominated debit and credit cards, a move that includes the previous 7.5 percent Value Added Tax. Virtual cards will continue to be provided free of charge, while holders of foreign currency-denominated cards will still incur an annual maintenance fee of $10.

Regarding Point of Sale (PoS) transactions, the revised guide emphatically states that all associated charges must be borne by merchants, not customers. This means cardholders paying merchants will not be charged. The Merchant Service Charge (MSC) payable by a merchant is set at 0.5 percent of the transaction value, subject to a maximum cap of N10,000, irrespective of the technology or payment method used.

The CBN has also clarified charges for ATM withdrawals and electronic transfers. Customers withdrawing from another bank’s ATM at on-site locations will be charged N100 per N20,000 withdrawal. Off-site ATMs, however, may attract an additional surcharge of up to N500 per transaction, with this charge subject to disclosure at the point of withdrawal. Electronic transfers of N5,000 and below will remain free. Transfers between N5,000 and N50,000 will incur a N10 charge, while transfers exceeding N50,000 will cost N50.

Further revisions include current account maintenance fees and transaction notifications. The account maintenance fee for current accounts remains negotiable but is subject to a capped rate, with a phased reduction already outlined. Specifically, this fee will be limited to N0.5 per mille in 2026 before being reduced to zero by 2027. For transaction notifications, customers may still be charged for mandatory SMS alerts on customer-initiated transactions, but only on a cost-recovery basis, ensuring fairness. Critically, email alerts must be provided at no cost.

The CBN's circular, addressed to banks, other financial institutions, and the public, and signed by Rita Sike, Director of the Financial Policy and Regulation Department, underscores that the revised guide provides for an increased range of financial services, encourages the development of innovative products, strengthens oversight and accountability, and promotes financial inclusion through lower tariffs for micropayments and transactions. The guide also reviewed some charges to encourage increased adoption of electronic channels and accommodate new industry participants. It explicitly directs financial institutions to apply non-credit related charges only to the extent of the balance in an account, deferring any outstanding charge until the account is funded. Furthermore, institutions are required to draw customers’ attention to their rights to negotiate where a charge is stipulated as 'negotiable'. Account reactivation and certain routine account services will remain free of charge, and any new fee, product, or service not listed in the guide must receive prior written approval from the central bank. This new framework replaces 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.