CBN ATM Card Fee Hike to N1500 Sparks Backlash as Experts Warn of Consumer Burden and Inclusion Risks

Economists and banking customers have flagged significant concerns over the Central Bank of Nigeria’s (CBN) proposal to raise the Automated Teller Machine card issuance fee to N1500, up from the current N1000.

This development follows the release of a 42-page exposure draft on April 21, 2026, detailing the Guide to Charges by Banks and Other Financial Institutions. The document outlines several proposed adjustments to banking fees and invites stakeholder and public input ahead of the May 8, 2026 deadline.

Reports indicate that among the key changes is a 50 percent increase in ATM card issuance fees. The draft also proposes the elimination of maintenance charges on Naira debit and credit cards, alongside the introduction of a $10 annual maintenance fee for foreign currency-denominated cards. The apex bank urged both financial institutions and the general public to submit feedback within the stipulated period.

The proposed policy has triggered mixed reactions nationwide, particularly concerning the revised ATM card issuance cost. While some Nigerians argue that the increase would compound existing financial pressures on consumers, others have welcomed the planned removal of maintenance fees on Naira cards.

In an interview, PulseNets learnt that Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria and a financial analyst, strongly criticised the timeline provided for stakeholder engagement. He described the deadline as unrealistic and rushed.

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

Ogunbunka maintained that the timeframe does not allow sufficient room for meaningful engagement, especially given the complexity of the document and prevailing economic realities.

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

He further noted that the association’s primary concern lies in the limited window for stakeholders, particularly industry operators, to thoroughly review the draft.

“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.

Meanwhile, PulseNets reported that Professor Godwin Oyedokun, an Accounting and Finance expert at Lead City University, also raised concerns over the proposed charges, warning of potential consequences for consumers and financial inclusion.

He observed that the policy underscores the ongoing 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.

Oyedokun explained that from a regulatory and institutional standpoint, the increase could be justified due to rising operational costs.

“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,” he noted.

However, he stressed that the burden on consumers cannot be ignored.

“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.

He warned that the proposed increase could intensify financial strain on households.

“a 50 percent increase in ATM card issuance fees is likely to be seen as another strain on already stretched households.”

Highlighting its broader impact, Oyedokun pointed to vulnerable segments of society.

“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 against unintended consequences.

“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 noted that such trends would undermine the country’s digital payments agenda.

At the same time, Oyedokun acknowledged potential benefits within the draft framework.

“reports suggest that the same framework may remove certain recurring charges, such as monthly card maintenance fees on naira cards.”

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

Despite this, he emphasized that public perception is shaped by trust and real-life experiences rather than numerical calculations alone.

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

He insisted that any increase in charges must be accompanied by tangible improvements in service delivery.

“Nigerians are more likely to accept reasonable charges when banking services are efficient, transparent, and dependable,” he said.

He also identified ongoing systemic issues affecting customer confidence.

“Failed transactions, delayed reversals, ATM cash shortages, poor complaint resolution, and unexplained deductions continue to erode confidence.”

Oyedokun urged stronger regulatory oversight to protect consumers.

“The CBN must therefore ensure that any revised charges are matched by stronger consumer protection measures.

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“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,” he 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 concluded.