Bank customers across Nigeria are facing a higher upfront cost for ATM cards, even as regulators move to eliminate recurring charges. The latest decision by the Central Bank of Nigeria reflects a broader push to rebalance banking fees and accelerate the country’s transition to digital payments.

On April 24, 2026, the Central Bank of Nigeria introduced a revised fee structure in its exposure draft of the Guide to Charges by Banks and Other Financial Institutions. The update increases the cost of issuing or replacing ATM/debit cards by 50 percent—from ₦1,000 to ₦1,500.

At the same time, the apex bank scrapped the ₦50 monthly maintenance fee previously charged on naira-denominated debit cards. However, customers using foreign currency cards will continue to pay an annual maintenance fee of $10.

The policy also clarifies that charges on Point-of-Sale (PoS) transactions will now be borne entirely by merchants, effectively making card payments free for consumers at checkout points.

Beyond the official statement, the revised charges point to a deliberate policy direction: move costs away from everyday transactions and toward one-time or institutional payments.

For consumers, this creates a mixed outcome. The immediate cost of obtaining a card rises, which may discourage low-income users from replacing lost or expired cards. Yet, over time, the removal of monthly maintenance fees reduces the cumulative burden, especially for customers who rely heavily on digital transactions.

What makes this more complex is the shift in responsibility to merchants. While customers are no longer charged for PoS transactions, businesses now absorb a Merchant Service Charge of up to 0.5 percent per transaction, capped at ₦10,000. In practice, this could reshape pricing behavior, as small and medium-sized enterprises may adjust product prices to offset the new costs.

That framing leaves out a critical risk: Nigeria’s informal retail sector—where price sensitivity is high—may respond by quietly transferring these costs back to consumers, undermining the intended benefit of “free” digital payments.

Nigeria has been steadily pushing toward a cashless economy for over a decade, with policies dating back to the early 2010s. The previous fee structure, including monthly card maintenance charges, often drew criticism for discouraging financial inclusion, particularly among low-income users.

Recent data from financial regulators shows increasing adoption of electronic payments, driven by mobile banking, fintech platforms, and PoS expansion across urban and semi-urban areas. However, cost remains a key barrier.

By eliminating recurring card fees and standardizing merchant charges, the central bank appears to be aligning with global trends where:
• Consumers face lower transaction friction
• Institutions and merchants bear a larger share of processing costs

This mirrors models in more advanced payment ecosystems, but implementation challenges—especially in Nigeria’s fragmented retail landscape—remain significant.

The revised fee structure is more than a pricing update; it signals a recalibration of Nigeria’s digital finance strategy. The real test now is whether the policy will deepen financial inclusion or simply redistribute costs in ways that are less visible to consumers.

What authorities do next—particularly in monitoring how banks and merchants implement these changes—will determine whether the shift delivers genuine savings or introduces new, indirect charges into everyday transactions.