₦airaland Forum

by Mark Itsibor


The Central Bank of Nigeria (CBN) has announced the removal of card maintenance charges on naira-denominated debit and credit cards, alongside a reduction in inter-bank transfer fees, as part of a sweeping review of banking charges aimed at easing costs for customers and deepening financial inclusion.

The changes are contained in a revised Guide to Charges by Banks and Other Financial Institutions, which will take effect from May 1, 2026, replacing the previous 2020 framework.

Under the new regime, electronic transfers of N5,000 and below will attract no charge.

Transactions between N5,000 and N50,000 will cost N10, while transfers above N50,000 will attract a N50 fee. The apex bank said the revised structure is designed to encourage low-value digital transactions and reduce reliance on cash.

The regulator also eliminated card maintenance fees for naira debit and credit cards, a move expected to provide direct relief to millions of bank customers. However, foreign currency-denominated cards will attract an annual maintenance fee of $10 or its equivalent.

In addition, the cost of issuing or replacing debit and credit cards has been increased from N1,000 to N1,500, reflecting what the CBN described as cost adjustments within the financial system.

The circular, signed by the director of Financial Policy and Regulation, Rita Sike, stated that the review is part of broader efforts to promote a safe, transparent, and competitive financial system.

According to the CBN, the updated guide expands the range of financial services covered, accommodates new industry participants, and strengthens accountability among regulated institutions.

“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.

It added that the revised framework would also accelerate the adoption of innovative financial services, particularly electronic payment channels, by lowering tariffs on micropayments and digital transactions.

Beyond transfers and card charges, the CBN introduced a cap on bill payments conducted through electronic channels, stating that such transactions should not exceed N100 per transaction, payable by the sender.

The regulator maintained that Point-of-Sale (PoS) transactions will remain free for customers, with applicable charges borne by merchants. Merchant service charges were fixed at 0.5 per cent of transaction value, subject to a maximum of N10,000 per transaction.

For Automated Teller Machine (ATM) withdrawals, the CBN retained charges for customers using other banks’ machines, pegging fees at N100 per N20,000 withdrawal at on-site ATMs. Off-site ATMs may attract an additional surcharge of up to N500 per transaction, provided such charges are disclosed to customers.

On transaction alerts, the apex bank clarified that email notifications must be provided free of charge, while SMS alerts may attract fees strictly on a cost-recovery basis.

The revised guide also strengthens consumer protection provisions, requiring financial institutions to clearly disclose all applicable charges and inform customers when fees are negotiable.

Where charges are designated as negotiable, banks are mandated to notify customers of their rights to negotiate at the outset of transactions. Any agreed charges must be documented through verifiable means.

The CBN further directed that non-credit related charges should only be applied to the extent of available account balances. Any outstanding fees must be deferred until the account is funded and must not attract additional interest.

To improve transparency in lending, the apex bank introduced stricter rules on loan pricing, requiring all lending rates and fees to be consolidated and presented as an Annual Percentage Rate (APR) to customers at the point of transaction.

It also mandated that customers must be notified in advance of any changes to agreed lending rates, with at least 10 business days’ notice for banks and five days for microfinance institutions.

In terms of compliance, the CBN placed responsibility on senior management of financial institutions to ensure strict adherence to the new guidelines.

Executive Compliance Officers and Chief Compliance Officers are required to enforce the rules internally, while heads of information technology must ensure that systems are configured to apply only approved charges.

Financial institutions are also mandated to submit monthly reports of failed electronic transactions across channels such as ATMs, PoS, mobile, and internet banking platforms.

The apex bank emphasised that any new product, service, or charge not covered in the guide must receive prior written approval before implementation.

The revised framework applies to all CBN-regulated institutions, including commercial banks, merchant banks, payment service banks, non-interest banks, microfinance banks, finance companies, and mobile money operators.

Industry analysts say the policy signals a deliberate push by the CBN to balance consumer protection with financial system efficiency, particularly at a time when digital payments are becoming central to economic activity.

By reducing the cost of everyday transactions while tightening oversight of banking charges, the apex bank aims to foster greater trust in the financial system and drive broader participation in formal financial services.

With the new rules set to take effect in May, customers and financial institutions are expected to adjust to a pricing framework that prioritises transparency, affordability, and innovation in Nigeria’s evolving financial landscape

Islie:
https://leadership.ng/cbn-scraps-card-maintenance-fees-waives-charges-for-transfers-of-n5000-below/

Islie:
https://leadership.ng/cbn-scraps-card-maintenance-fees-waives-charges-for-transfers-of-n5000-below/

akpumping7720:
I don't know what this commercial banks are maintaining for these high maintenance fees.

floss:
Finally Yarimo will see extra change he’ll use to buy data to come online to continue standing on Tulumbu scrotum