CBN Proposes N1500 ATM Card Fee, Experts Kick Against Hike

The Central Bank's proposal to raise ATM card fees to N1,500 has sparked debate over consumer welfare and financial inclusion.

Automated Teller Machine displaying card issuance options illustrating the new CBN bank charges review.

The Central Bank of Nigeria (CBN) has sparked fresh debate over banking costs with its latest proposal to raise ATM card issuance charges. In a recently released draft guide, the apex bank suggested increasing the fee from N1,000 to N1,500. This 50 percent hike has drawn immediate criticism from financial experts and consumer advocacy groups.

The proposal is part of a broader 42-page review of banking charges. While the CBN plans to scrap maintenance fees on Naira debit and credit cards, it introduces a $10 annual fee for foreign currency cards. The public has been given a short window to submit feedback before the guidelines are finalized.

Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, believes the process is rushed. He argued that the deadline for feedback is unrealistic for stakeholders to properly review such a complex document. He noted that forcing such rapid changes through is a "Herculean task" given the current economic climate.

Financial analyst Professor Godwin Oyedokun also weighed in, warning that the fee increase could hurt ordinary Nigerians. He pointed out that for students, pensioners, and small business owners, an extra N500 is significant. He cautioned that higher costs might force people to abandon digital banking for cash transactions, effectively reversing financial inclusion gains.

While the removal of monthly maintenance fees offers some relief, experts insist that trust remains the bigger issue. Professor Oyedokun emphasized that Nigerians are more likely to accept charges if banking services improve. Until issues like failed transactions and poor customer service are fixed, he argues that any fee hike will feel like a burden on struggling households.