The Central Bank of Nigeria(CBN) has proposed a new increase in the cost of Automated Teller Machine (ATM) card issuance, raising it from ₦1,000 to ₦1,500.
The proposal, contained in a 42-page exposure draft titled Guide to Charges by Banks and Other Financial Institutionsreleased on April 21, 2026, has triggered widespread reactions among economists, financial experts, and bank customers across Nigeria.
The draft also outlines other changes, including the removal of maintenance charges on naira debit and credit cards, and a $10 annual maintenance fee for foreign currency cards.
The apex bank has invited stakeholders and the general public to submit feedback on the proposed charges on or before May 8, 2026.
However, the announcement has sparked mixed reactions, with some Nigerians expressing concern over rising banking costs, while others welcomed certain aspects of the proposal.
Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, criticised the short timeline for feedback, describing it as rushed.
“We disagree with the take-off date or proposed take-off date. It appears rather too sudden, too near,” he said.
“I think it is Herculean, especially given what is happening in our own environment.”
He added:
“The first reaction we have is that the deadline is too tight for people to react. Nigerians would have been given more time to study, especially operators.”
Why The CBN Is Proposing An Increase In ATM Card Charges
Experts say the proposed increase reflects broader economic and operational realities facing banks and regulators.
Professor Godwin Oyedokun of Lead City University explained that rising costs across the banking ecosystem are a key factor.
“The cost of card production, chip technology, cybersecurity safeguards, logistics, and service infrastructure has risen significantly in recent years,” he said.
He added that banks are operating under increasing financial pressure, including higher energy costs, technology investments, and regulatory compliance requirements.
“In that sense, a revision of charges may be viewed as an attempt to reflect prevailing economic realities and sustain service delivery,” Oyedokun noted.
What The ATM Fee Increase Means For Nigerian Bank Customers
Despite the justification from regulators, experts warn that the increase could have real consequences for everyday Nigerians.
“Consumers often experience banking charges not as isolated items, but as a cumulative burden,” Oyedokun said.
“Transfer fees, SMS alert deductions, electronic transaction charges, and other service-related costs already create the perception that customers are paying continuously simply to access their own money.”
He warned that the ₦500 increase may hit vulnerable groups the hardest.
“For low-income earners, students, pensioners, artisans, and small business operators, N500 is not a negligible amount. It can cover transportation, food, or basic household needs.”
The policy could also affect financial inclusion.
“If the cost of accessing banking tools continues to rise, some consumers may delay replacing expired or damaged cards, reduce usage of formal channels, or revert to cash-based transactions,” he said.
Experts note that such outcomes could slow Nigeria’s push toward a cashless economy.
However, the proposal also includes a potential benefit.
“If effectively implemented, some customers could save more over time than they lose through the one-off increase,” Oyedokun added, referring to the removal of monthly maintenance fees on naira cards.
Still, trust remains a major concern.
“Public reaction shows that consumers judge policies not only by arithmetic but also by trust and lived experience.”
Oyedokun stressed that improved service delivery must accompany any increase in charges.
“Nigerians are more likely to accept reasonable charges when banking services are efficient, transparent, and dependable.”
He highlighted persistent issues such as failed transactions, delayed reversals, ATM cash shortages, and poor complaint resolution, which continue to affect users.
“The CBN must therefore ensure that any revised charges are matched by stronger consumer protection measures.
“Banks should be required to communicate fees clearly, eliminate hidden charges, improve service delivery standards, and strengthen dispute resolution mechanisms.
“Regulatory reform must not become synonymous with fee increases alone.”
“Ultimately, banking should remain accessible, affordable, and trustworthy.
“Financial inclusion is sustained not merely by opening accounts, but by ensuring that citizens can use financial services without feeling exploited,” he told DAILY POST.
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