Nigeria hikes ATM card fees, cuts transfer charges in digital banking push

Nigeria’s central bank is proposing a shake-up of banking fees that will make ATM cards more expensive while cutting or eliminating several everyday charges, in a move aimed at speeding up digital payments in Africa’s largest economy.

• Nigeria’s central bank plans to raise ATM card fees by 50% while eliminating some common banking charges.
• Small digital transfers will become cheaper or free under the new rules.
• Merchants, not customers, will bear card transaction costs.
• The move is aimed at accelerating digital payments and financial inclusion.

The Central Bank of Nigeria said in a draft 2026 Guide to Charges that the cost of issuing or replacing a standard debit or credit card will rise by 50% to about $1 (N1,500), up from about $0.71(N1,000).

At the same time, the regulator plans to scrap the long-standing $0.03(₦50) monthly maintenance fee on naira cards, a charge many customers have complained about for years. However, holders of foreign currency cards will still pay an annual fee of $10.

The proposals are part of a broader effort by the central bank to modernise Nigeria’s payments system, expand financial inclusion, and push more transactions onto digital channels.

Shift toward digital payments

Under the draft rules, small electronic transfers will become cheaper or free. Transfers below $3.50 (N5,000) will attract no fee, while transactions between N5,000 and N50,000 ($35) will cost $0.01(N10). Transfers above N50,000 will be charged $0.03(N50).

The central bank is also tightening rules around card payments. It said customers will no longer pay charges when using their cards at merchant locations, as those costs will be fully borne by businesses through a Merchant Service Charge capped at 0.5%, with a maximum of N10,000 per transaction.

This effectively shifts the burden away from consumers and aligns Nigeria more closely with global payment norms, where merchants, not shoppers, absorb card processing costs.

Virtual debit cards will remain free, a move that could further accelerate the shift toward app-based banking and reduce reliance on physical cards.

ATM and other charges

The draft also outlines new ATM withdrawal charges. Customers may pay $0.06 (N100) for every $14.29 (N20,000) withdrawn at on-site ATMs, while off-site withdrawals could attract an additional surcharge of up to $0.36 (N500), which must be disclosed before the transaction is completed.

Separately, the central bank is proposing a $0.11 (N150) fee for processing e-dividend mandates, a service used by investors to receive dividends directly into their bank accounts.

Industry-wide application

The new guide will apply across Nigeria’s financial system, covering commercial banks, microfinance banks, payment service banks, mobile money operators, and other regulated institutions.

According to the central bank, the review is designed to “promote a safe and sound financial system,” encourage innovation, and reflect changes in the financial sector since the last version of the guidelines was issued in 2020.

The draft has been released for public consultation, with stakeholders invited to submit feedback before implementation.

Bigger picture for Africa

Nigeria’s move mirrors a broader trend across Africa, where regulators are pushing to reduce the cost of digital transactions while improving access to financial services.

With mobile money and fintech adoption rising rapidly across the continent, policymakers are increasingly focused on pricing structures that encourage low-value, high-volume transactions, especially among underserved populations.

For consumers, the changes could mean fewer routine banking charges but higher upfront costs for physical cards. For banks and payment providers, it signals continued pressure to compete on digital infrastructure rather than fee income.