New banking charges proposal sparks reactions — Nigerians not taking it lightly

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Economists and bank customers have raised significant concerns over the Central Bank of Nigeria’s proposed increase in the Automated Teller Machine card issuance fee to N1500 from N1000.

This follows the apex bank’s release of a 42-page exposure draft of the Guide to Charges by Banks and Other Financial Institutions on April 21, 2026.

ZINGTIE reports that the draft includes a 50 percent increase in ATM card issuance fees, the removal of maintenance charges on Naira debit and credit cards, and a $10 annual charge for foreign currency-denominated card maintenance.

The CBN also outlined other banking charges and invited financial institutions and the public to submit feedback on or before May 8, 2026.

The proposed policy has generated reactions among Nigerians, particularly regarding the N1500 ATM card issuance fee.

While some Nigerians argue that the increase would further burden bank customers, others have commended the proposed removal of maintenance charges on Naira debit and credit cards.

Speaking on the draft in an interview with ZINGTIE, Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, criticised the timeline for stakeholder feedback.

He described the deadline as unrealistic and rushed.

Ogunbunka stated that the timeline appears “too sudden” and does not provide sufficient opportunity for stakeholders to properly review and respond to the document, which was only recently released.

“We disagree with the take-off date or proposed take-off date. It appears rather too sudden, too near,” he said.

He noted that obtaining meaningful feedback and finalising the document within such a short period would be difficult, particularly given the current economic environment.

“I think it is Herculean, especially given what is happening in our own environment,” he added.

According to him, the association’s immediate concern is the limited timeframe, which restricts stakeholders, especially operators, from thoroughly studying the document.

“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,” Ogunbunka stated.

On his part, a professor of Accounting and Finance at Lead City University, Godwin Oyedokun, expressed concerns over the proposed ATM issuance and replacement fees.

He warned that the policy could increase financial pressure on consumers and weaken financial inclusion.

Oyedokun said the move “has again brought to the fore the enduring tension between regulatory cost adjustments and consumer welfare.”

“At a time when many Nigerians are already grappling with inflation, stagnant incomes, and rising living expenses, any upward review of banking charges is bound to attract scrutiny,” he said in an interview on Monday.

He explained that from the perspective of regulators and financial institutions, the increase may be justified.

“The cost of card production, chip technology, cybersecurity safeguards, logistics, and service infrastructure has risen significantly in recent years,” he said, adding that “banks operate within an environment of escalating operating expenses, including power costs, technology investments, and compliance obligations.”

“In that sense, a revision of charges may be viewed as an attempt to reflect prevailing economic realities and sustain service delivery,” Oyedokun noted.

However, he stressed that for the average Nigerian, the situation is different.

“Consumers often experience banking charges not as isolated items, but as a cumulative burden,” he 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 added.

Against this backdrop, he warned that “a 50 percent increase in ATM card issuance fees is likely to be seen as another strain on already stretched households.”

Highlighting the impact on vulnerable groups, Oyedokun said, “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.”

On financial inclusion, he cautioned that “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 added that “such outcomes would run contrary to the national objective of digital payments expansion.”

The professor acknowledged potential benefits in the draft, noting that “reports suggest that the same framework may remove certain recurring charges, such as monthly card maintenance fees on naira cards.”

He added, “If effectively implemented, some customers could save more over time than they lose through the one-off increase.”

Nonetheless, he emphasised that “public reaction shows that consumers judge policies not only by arithmetic but also by trust and lived experience.”

Oyedokun argued 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 said.

He pointed out ongoing challenges within the system: “Failed transactions, delayed reversals, ATM cash shortages, poor complaint resolution, and unexplained deductions continue to erode confidence.”

“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,” Oyedokun added.

“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 said.

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