In a move set to impact millions of bank customers nationwide, the Central Bank of Nigeria (CBN) has announced sweeping changes to banking charges, including the removal of card maintenance fees and the introduction of a revised fee structure aimed at improving transparency and consumer protection.
The new directives, which took effect on May 1, 2026, mark one of the most significant updates to Nigeria’s banking fee framework in recent years, replacing the previous guidelines issued in 2020.
Card Maintenance Fees Removed for Nigerian Bank Customers
One of the most notable changes is the complete elimination of maintenance fees on naira-denominated debit and credit cards. This decision is expected to bring immediate financial relief to millions of Nigerians who previously incurred recurring charges on their bank cards.
The CBN also confirmed that virtual cards will remain free, reinforcing efforts to encourage digital banking and financial inclusion.
However, while maintenance fees have been scrapped, the cost of issuing or replacing cards has increased from ₦1,000 to ₦1,500, reflecting rising operational costs in the banking sector.
New Banking Charges Framework Aims for Transparency
According to the apex bank, the revised “Guide to Charges by Banks and Other Financial Institutions” is designed to promote flexibility, standardisation, and competition across Nigeria’s financial system.
The framework applies broadly to:
- Commercial banks
- Microfinance banks
- Payment service banks
- Mobile money operators
By enforcing stricter guidelines, the CBN aims to eliminate hidden charges and ensure customers are fully aware of applicable fees.
Email Alerts Now Free, SMS Charges Restricted
In another customer-focused directive, the CBN mandated that email transaction alerts must be provided at no cost to customers.
While SMS alerts will still attract charges, banks are only permitted to bill customers on a cost-recovery basis, meaning they cannot profit from these deductions.
This change is expected to encourage more users to switch to free digital notifications, reducing banking expenses.
ATM Withdrawal and Transfer Charges Explained
The updated guidelines also clarify charges for ATM withdrawals and electronic transfers:
- ₦100 per ₦20,000 withdrawal when using another bank’s ATM (on-site)
- Additional ₦500 surcharge for off-site ATMs (e.g., malls, fuel stations)
- Transfers below ₦5,000 remain free
- ₦10 fee for transfers between ₦5,000–₦50,000
- ₦50 fee for transfers above ₦50,000
Customers must be informed of any applicable charges before completing transactions, reinforcing transparency.
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POS Payments Remain Free for Customers
The CBN maintained that Point-of-Sale (POS) payments will continue to be free for customers, with merchants responsible for covering transaction costs.
Businesses will now pay a merchant service charge of 0.5%, capped at ₦10,000 per transaction, regardless of payment method.
Current Account Maintenance Fees to End by 2027
While savings account holders benefit immediately, current account maintenance fees will be gradually phased out.
- 2026: Capped at N0.5 per mille
- 2027: Completely eliminated
This phased approach is expected to reduce financial pressure on businesses and high-volume account holders.
More Free Banking Services Introduced
Beyond card maintenance removal, the CBN confirmed that several routine services will remain free, including:
- Account reactivation
- Basic account maintenance services
- Some digital banking features
Additionally, banks must seek CBN approval before introducing any new charges, ensuring tighter regulatory control.
CBN Warns Nigerians About Banking Fraud
Alongside the new fee structure, the CBN has issued warnings about fraudulent messages and scams, urging customers to remain vigilant against fake communications posing as official directives.
The regulator emphasised that consumer protection remains a top priority, especially as digital banking adoption continues to grow.
What the New Bank Charges Mean for Nigerians
Overall, the revised banking charges signal a shift toward customer-friendly policies, balancing cost reductions with necessary adjustments.
Key takeaways include:
- Lower everyday banking costs
- Increased transparency in charges
- Stronger consumer protection measures
For millions of Nigerians, these changes could translate into significant long-term savings and a more predictable banking experience.
FAQ
What did the CBN change about bank charges in 2026?
The CBN removed card maintenance fees, made email alerts free, adjusted ATM and transfer charges, and introduced a more transparent fee framework for all financial institutions.
Are debit card maintenance fees still charged in Nigeria?
No. The CBN has completely scrapped maintenance fees on naira debit and credit cards.
How much does it cost to replace an ATM card now?
The cost has increased to ₦1,500, up from ₦1,000.
Are bank transfers free in Nigeria?
Transfers below ₦5,000 are free. Transfers between ₦5,000 and ₦50,000 cost ₦10, while transfers above ₦50,000 cost ₦50.
Do banks still charge for SMS alerts?
Yes, but only on a cost-recovery basis. Banks are not allowed to profit from SMS alert charges.
Are email transaction alerts free?
Yes. The CBN has mandated that all email alerts must be free.
What are the ATM withdrawal charges in Nigeria?
Customers pay ₦100 per ₦20,000 withdrawal at another bank’s ATM, with additional charges possible for off-site ATMs.
Will current account maintenance fees be removed?
Yes. The CBN plans to completely eliminate current account maintenance fees by 2027.
Do customers pay for POS transactions?
No. POS payments remain free for customers, while merchants bear the transaction cost.
Why did the CBN introduce these changes?
The reforms aim to enhance transparency, reduce hidden charges, promote competition, and protect consumers in Nigeria’s banking system.