Exposure draft of the 2026 Guide to Bank Charges eliminates VAT-inclusive monthly debit card fees, shields cardholders from Point-of-Sale transaction costs, pegs the merchant service charge at 0.5%, capped at N10,000.
The Central Bank of Nigeria has raised the fee for issuing or replacing regular debit and credit cards to N1,500 from N1,000, representing a 50% increase, while abolishing the monthly maintenance charge of N50 plus 7.5% Value Added Tax previously levied on naira-denominated cards, according to the apex bank’s exposure draft of the Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026.
The revised tariff framework, signed by Director of Financial Policy and Regulation Dr Rita Sike, stipulates that virtual cards will be issued at no charge, while fees for premium, hybrid, or specialty cards remain negotiable between banks and customers. Holders of foreign currency-denominated debit or credit cards will continue to pay an annual maintenance fee of $10, the document states. The new charges signal a fresh review of banking tariffs aimed at reshaping electronic payment costs as part of broader efforts to strengthen Nigeria’s financial system, deepen financial inclusion, and accelerate the shift to digital payment channels.
In a customer-friendly provision, the CBN directed that all Point-of-Sale transaction costs be borne entirely by merchants, shielding cardholders from charges at merchant locations. “All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e, the MSC shall be borne by the merchant,” the document states. The Merchant Service Charge is pegged at 0.5% per transaction, subject to a maximum of N10,000, and applies uniformly regardless of the technology or payment method used. The regulator noted that the updated guide expands the scope of financial services, supports innovation, and introduces measures to enhance transparency and accountability within the banking sector.
The abolition of monthly naira card maintenance fees addresses a longstanding customer complaint about recurring charges that previously attracted VAT, resulting in a total monthly deduction of N53.75 per card. Under the new framework, customers will only pay the one-time issuance or replacement fee of N1,500 for regular cards, eliminating the cumulative annual burden of N645 in maintenance charges. However, the upfront cost of obtaining a new card has increased by N500, which banks may absorb or pass on to customers depending on their pricing strategies.
The move is expected to encourage the adoption of electronic payment platforms by reducing costs on micropayments and aligning charges with evolving industry dynamics. The exposure draft is subject to stakeholder feedback before final implementation, though the CBN has not specified a deadline for comments or an effective date for the revised charges. Banks and other financial institutions are expected to update their fee schedules once the guide is finalized and published as official policy.
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