Nigeria’s central bank is planning a major overhaul of banking fees that will raise the cost of ATM cards while removing several routine charges, in an effort to accelerate the shift toward digital payments in Africa’s biggest economy.
In a draft 2026 Guide to Charges, the Central Bank of Nigeria proposed increasing the cost of issuing or replacing standard debit and credit cards by 50% to about $1 (N1,500), up from roughly $0.71 (N1,000).
At the same time, it intends to abolish the monthly maintenance fee of $0.03 (₦50) on naira-denominated cards, a long-criticised charge among customers. However, foreign currency cards would still attract an annual fee of $10.
The reforms are part of a wider strategy to modernise the country’s payment ecosystem, improve financial inclusion, and encourage greater use of digital channels for transactions.
Push toward cashless payments
Under the proposed framework, low-value electronic transfers would become cheaper or completely free. Transactions below $3.50 (N5,000) would not incur any fees, while transfers between N5,000 and N50,000 ($35) would cost $0.01 (N10). Payments above N50,000 would be charged $0.03 (N50).
The regulator is also revising rules for card usage at merchant outlets. Customers will no longer pay fees when using cards for purchases, as those costs will shift entirely to businesses through a Merchant Service Charge capped at 0.5%, with a maximum of N10,000 per transaction.
This adjustment places the cost burden on merchants rather than consumers, bringing Nigeria closer to global payment systems where businesses absorb card processing fees.
Virtual debit cards will continue to be issued free of charge, potentially accelerating mobile-first banking and reducing dependence on physical cards.
ATM withdrawals and other fees
The draft introduces new pricing for ATM usage. Withdrawals at on-site machines may cost $0.06 (N100) per N20,000 withdrawn, while off-site ATM transactions could include an additional surcharge of up to $0.36 (N500), which must be clearly disclosed before completion.
In addition, a $0.11 (N150) fee is proposed for processing e-dividend mandates, which allow investors to receive dividend payments directly into their bank accounts.
System-wide coverage
The updated pricing framework would apply across the entire financial sector, including commercial banks, microfinance institutions, payment service banks, mobile money operators, and other regulated providers.
According to the Central Bank of Nigeria, the revisions aim to strengthen financial system stability, encourage innovation, and reflect structural changes in the industry since the last update in 2020.
The draft policy has been opened for public consultation, with stakeholders invited to submit feedback before final implementation.
Regional context
The changes in Nigeria reflect a wider continental shift, as regulators across Africa seek to lower the cost of digital transactions and expand access to financial services.
With rapid growth in mobile money and fintech adoption, policymakers are increasingly prioritising fee structures that support high-volume, low-value digital transactions, particularly for underserved populations.
For consumers, the reforms may reduce everyday banking deductions while increasing upfront costs for physical card services. For financial institutions, they signal a continued shift toward competition driven by digital infrastructure rather than traditional fee-based revenue models.