CBN’s Proposed ATM Card Fee Hike Sparks Backlash as Experts Warn of Rising Burden on Nigerians

A fresh proposal by the Central Bank of Nigeria (CBN) to increase ATM card issuance fees has triggered widespread concern, with economists and consumer advocates warning of added pressure on already strained households.

The draft policy, which seeks to raise the cost of ATM card issuance from N1000 to N1500, forms part of a broader 42-page guideline on bank charges released by the regulator on April 21, 2026.

While the proposal also includes the removal of maintenance fees on naira debit and credit cards, as well as a $10 annual charge for foreign currency cards, the planned increase in issuance fees has drawn the most criticism.

Financial analyst and President of the Bank Customers’ Association of Nigeria, Dr Uju Ogunbunka, faulted the timeline given for public input, describing it as rushed and impractical.

He argued that stakeholders were not given enough time to properly review the document before the May 8 deadline, calling the process “too sudden” for meaningful engagement.

Beyond the timeline concerns, experts say the proposed increase could deepen the financial strain on consumers already grappling with inflation and rising living costs.

Professor of Accounting and Finance, Godwin Oyedokun, warned that the move highlights the growing tension between regulatory adjustments and consumer welfare.

He noted that while banks may justify the increase due to rising operational costs—such as technology, logistics, and cybersecurity—the average Nigerian experiences banking charges as a growing cumulative burden.

“Transfer fees, SMS charges, and other deductions already make customers feel like they are constantly paying to access their own money,” he said.

Oyedokun stressed that a 50 percent increase in ATM card issuance fees could disproportionately affect low-income earners, students, and small business owners, for whom N500 remains a significant expense.

He also raised concerns about financial inclusion, warning that higher costs could discourage some Nigerians from using formal banking services or replacing expired cards.

Such a shift, he said, could undermine the country’s push toward digital payments and reduce participation in the formal financial system.

Despite the concerns, analysts acknowledged that the removal of recurring maintenance fees on naira cards could provide long-term relief for some customers, depending on implementation.

However, Oyedokun emphasised that public acceptance of the policy would depend heavily on trust and improved service delivery from banks.

He pointed to persistent issues such as failed transactions, delayed reversals, ATM cash shortages, and poor complaint resolution, which continue to frustrate customers.

The CBN has invited feedback from stakeholders as it reviews the proposal, but pressure is mounting for the regulator to balance cost recovery with consumer protection.

Experts insist that any increase in charges must be matched by transparency, better service quality, and stronger safeguards to maintain confidence in Nigeria’s banking system.