CBN Scraps Monthly ATM Maintenance Charges, Raises Issuance Fee

The Central Bank of Nigeria (CBN) has increased the cost of issuing and replacing Automated Teller Machine (ATM) debit and credit cards by 50 per cent, raising the fee to ₦1,500 from ₦1,000.

The move is part of a broader review of banking charges across the financial sector.

At the same time, the apex bank has abolished the ₦50 monthly maintenance charge previously applied to naira debit and credit cards, a fee that often attracted an additional 7.5 per cent Value Added Tax.

However, customers using foreign currency-denominated debit and credit cards will still be required to pay an annual maintenance fee of $10, according to the new draft guidelines.

“ATM card issuance/replacement charges for regular/basic debit/credit card is ₦1,500.”

The CBN also clarified that charges for premium debit, credit, and hybrid cards remain negotiable, while virtual cards will attract no issuance fees under the new framework.

In a shift aimed at protecting consumers, the apex bank ruled that all ATM transactions at merchant point-of-sale (PoS) terminals will no longer attract charges to cardholders, as costs will now be borne by merchants.

“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant.”

The Merchant Service Charge (MSC) has been set at 0.5 per cent, capped at ₦10,000, and will apply uniformly across all payment technologies and methods.

Explaining the rationale behind the review, the CBN said the updated Guide to Charges for Banks and Other Financial Institutions is designed to strengthen financial stability, improve oversight, and encourage digital payments.
The bank added that the reforms are also intended to promote innovation, deepen financial inclusion, and reduce the cost of small-value transactions across Nigeria’s banking system.