By Jemimah Wellington, JKNewsMedia Correspondent
ADJUSTMENT OF bank charges has been introduced with an increase in the fee for issuing or replacing debit and credit cards from N1000 to N1500 under a revised framework by the Central Bank of Nigeria (CBN).
JKNewsMedia.com reports that the change forms part of a circular released on Thursday titled Guide to Charges by Banks and Other Financial Institutions.
The apex bank stated that the new fee takes effect from May 1 and applies to standard ATM cards issued by banks and other regulated institutions nationwide.
CBN, as the regulator, also said no maintenance fee will be charged on naira denominated debit or credit cards, while virtual cards will remain free.
It says the revised framework replaces the guidelines issued in January 2020 and applies to all financial institutions regulated by the CBN, including commercial banks, microfinance banks, payment service banks, and mobile money operators.
The bank stated that the guide also followed consultations with stakeholders to strengthen transparency and standardisation of charges across the financial system.
“The Guide aims to enhance flexibility, standardisation, transparency and competition in the Nigerian financial system,” the apex bank said.
Under the revised schedule, point of sale payments made by customers to merchants will remain free, with the merchant required to bear the merchant service charge.
The charge payable by businesses is set at 0.5 percent of the transaction value, subject to a maximum of N10,000, regardless of the payment method used.
On transaction notifications, the bank said customers may still be charged for mandatory SMS alerts on customer-initiated transactions on a cost recovery basis, while email alerts must be provided at no cost.
The regulator retained provisions on account maintenance charges for current accounts, stating that the fee remains negotiable but subject to a capped rate, “with a phased reduction already outlined”.
It added that the current account maintenance fee will be limited to “N0.5 per mille in 2026” before being reduced to zero by 2027.
Customers withdrawing from another bank’s ATM will pay N100 per N20,000 withdrawal at on site locations, while off site ATMs may attract an additional surcharge of up to N500 per transaction, subject to disclosure at the point of withdrawal.
Electronic transfers of N5,000 and below will remain free.
Transfers between N5,000 and N50,000 will attract a charge of N10, while transfers above N50,000 will cost N50.
“In line with the provisions of the extant Consumer Protection Regulations, financial institutions shall apply non-credit related charges on an account only to the extent of the balance in the account and defer any outstanding charge until the account is funded,” the document reads.
Also, JKNewsMedia.com reports that the CBN has also directed financial institutions to inform customers whenever charges are negotiable.
“Where a charge is stipulated as ‘negotiable’, financial institutions are required to draw the attention of customers to their rights to negotiate at the beginning of the transactions and subsequently, if the need arises,” the bank said.
Account reactivation and certain routine account services will remain free of charge, while any new fee, product, or service not listed in the guide must receive prior written approval from the central bank.
Lastly, the CBN stated that the revised framework forms part of broader efforts to strengthen consumer protection, standardise banking practices, and ensure fairness in the pricing of financial services nationwide.
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