The Central Bank of Nigeria has raised the cost of issuing and replacing ATM debit and credit cards to ₦1,500, up from ₦1,000, according to its 2026 draft guide on bank charges.

The revision comes as part of a broader update to how fees are structured across Nigeria’s banking system, affecting customers, merchants and financial institutions.

Under the new framework, the ₦50 monthly maintenance charge on naira debit and credit cards has been removed. This means customers will now pay more upfront to get a card, but will no longer be charged monthly for maintaining it. However, foreign currency cards will still attract an annual maintenance fee of US$10.

The updated guide also makes it clear that customers will not be charged for card payments made at merchant locations. Instead, merchants will bear the Merchant Service Charge, which is set at 0.5 percent per transaction and capped at ₦10,000.

This keeps card payments free for users at the point of transaction, while pushing more of the cost to businesses that accept payments.

The changes come at a time when electronic payments continue to grow across Nigeria, with more transactions moving away from cash to cards, transfers and mobile platforms. Card usage remains a key part of that system, especially for retail payments and ATM withdrawals.

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For banks, increasing the card issuance fee reflects the rising cost of producing and managing payment cards, including technology, security features and infrastructure.

For customers, the impact is more immediate. Getting a new or replacement card now costs more, even though the removal of monthly charges may reduce long-term deductions.

The new pricing structure shows how banks and regulators are adjusting to a system where digital transactions are becoming central, but the cost of maintaining that system still needs to be recovered.

As the draft moves toward implementation, the changes will affect how both customers and businesses experience everyday banking, particularly around card usage and payment charges.

At the same time, the higher cost of ATM cards could further accelerate the shift toward mobile banking, which has already been expanding rapidly across Nigeria. Data from the Nigeria Inter-Bank Settlement System shows that electronic transfers now account for a significant share of transaction volumes, with billions of naira moved monthly through mobile apps, USSD codes and online banking platforms.

Mobile banking adoption has been driven by increasing smartphone penetration, which is estimated to be above 50 percent, as well as the widespread use of USSD services that allow transactions without internet access. For many users, transfers have become the primary way to send and receive money, reducing reliance on physical cards.

This trend is also reflected in everyday behaviour. Many consumers now use mobile apps for payments, airtime purchases and bill settlements, while businesses increasingly accept transfers in place of card payments. In some cases, debit cards are used mainly for ATM withdrawals rather than regular transactions.

With the cost of obtaining a card rising, some users may choose to rely even more on mobile channels, especially where digital banking already meets their needs. However, cards are still necessary for certain services, including ATM access and some international transactions, meaning they are unlikely to disappear from the system entirely.

The adjustment in card fees, therefore, sits within a broader transition, where banking in Nigeria is gradually becoming less dependent on physical tools and more centred on digital access, even as the supporting infrastructure continues to evolve.

Meiza Nigeria