NEWS
CBN Slashes Banking Costs, Abolishes Card Maintenance Fees, Cuts Transfer Charges in Major Overhaul Set to Reshape Nigeria’s Digital Payments System from May 2026
The Central Bank of Nigeria (CBN) has unveiled a sweeping reform of banking charges across the country, announcing the removal of card maintenance fees on naira-denominated debit and credit cards, alongside significant reductions in electronic transfer costs, in what it describes as a major step toward easing financial pressure on consumers and deepening financial inclusion.
The new policy framework is 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 version that has governed banking fees for years.
Under the updated structure, electronic transfers of ₦5,000 and below will now attract no charge, while transactions between ₦5,000 and₦50,000 will cost ₦10. Transfers above ₦50,000 will attract a flat ₦50 fee. The CBN said the adjustment is aimed at encouraging low-value digital payments and reducing dependence on cash transactions across the economy.
One of the most notable highlights of the reform is the outright elimination of card maintenance fees for naira debit and credit cards, a decision expected to offer immediate relief to millions of bank customers nationwide.
However, the apex bank clarified that foreign currency-denominated cards will still attract an annual maintenance fee of $10 or its equivalent, maintaining a cost structure for international card usage.
In a related adjustment, the cost of issuing or replacing debit and credit cards has been increased from ₦1,000 to N₦1,500, which the regulator attributed to prevailing operational cost realities within the financial sector.
The circular, signed by the director of Financial Policy and Regulation, Rita Sike, stated that the review forms 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.
The CBN further explained that the revised framework is designed to accelerate the adoption of innovative financial services by lowering costs associated with micropayments and electronic transactions, thereby boosting digital payment usage across the country.
Beyond transfer charges and card fees, the regulator introduced a cap on electronic bill payments, stating that such transactions should not exceed ₦100 per transaction, payable by the sender.
Point-of-Sale (PoS) transactions remain free for customers, with all applicable charges now to be borne by merchants. Merchant service charges have been fixed at 0.5 per cent of transaction value, subject to a maximum of ₦10,000 per transaction.
For Automated Teller Machine (ATM) withdrawals, the CBN maintained existing charges for customers using other banks’ machines, pegging fees at ₦100 per ₦20,000 withdrawal at on-site ATMs. Off-site ATMs may attract an additional surcharge of up to ₦500 per transaction, provided such charges are fully disclosed to customers in advance.
On transaction alerts, the apex bank clarified that email notifications must be provided free of charge, while SMS alerts may only attract fees strictly on a cost-recovery basis.
The revised guide also strengthens consumer protection measures by mandating financial institutions to clearly disclose all applicable charges and inform customers when fees are negotiable.
Where charges are negotiable, banks are required to notify customers of their right to negotiate at the point of transaction initiation. Any agreed fees must be properly documented through verifiable means to ensure transparency.
The CBN also directed that non-credit related charges should only be applied where sufficient account balances exist. Any outstanding fees must be deferred until funds are available and must not accrue additional interest.
To enhance transparency in lending practices, the apex bank introduced stricter loan pricing rules, requiring all lending rates and associated fees to be consolidated and presented as an Annual Percentage Rate (APR) to customers at the point of transaction.
It further mandated that borrowers must be notified in advance of any changes to agreed lending rates, with at least 10 business days’ notice for commercial banks and five days for microfinance institutions.
In terms of compliance enforcement, the CBN placed responsibility on the senior management of financial institutions to ensure strict adherence to the new guidelines.
Executive Compliance Officers and Chief Compliance Officers are expected to enforce the framework internally, while heads of information technology must ensure system configurations reflect only approved charges.
Financial institutions are also required to submit monthly reports detailing failed electronic transactions across ATMs, PoS, mobile, and internet banking channels.
The apex bank emphasised that any new financial product, service, or charge not explicitly covered in the guide must receive prior written approval before implementation.
The revised framework applies broadly 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 observers note that the policy signals a deliberate effort by the CBN to strike a balance between consumer protection and financial system efficiency at a time when digital payments are rapidly becoming central to Nigeria’s economy.
By reducing the cost of everyday transactions while tightening oversight of banking charges, the apex bank aims to strengthen public trust in the financial system and encourage wider participation in formal financial services.
With implementation set for May 2026, both customers and financial institutions are expected to adjust to a new pricing regime that prioritises transparency, affordability, and innovation across Nigeria’s evolving financial landscape.