Bank customers in Nigeria will from this month will be paying a N50 monthly card maintenance fee instead of a yearly N100. This simply means that every year, each bank customer would be paying N600 instead of N100 – representing a N500 increment.

The Central Bank of Nigeria (CBN) is behind the tariff hike and it affects debit and credit cards and the implementation will begin from May 1, 2017. The CBN said this new tariff is in line with review of chargesby banks and other financial institutions in the country.

According to media report, the “Guide to Charges by Banks and Other Financial Institutions” provides a basis for the application of charges on various products and services offered by the banks and other financial institutions in Nigeria to their customers. Kevin Amugo, CBN’s Director of Financial Policy and Regulation Department, said the charges came after extensive consultation with stakeholders.

“The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry,” he said.

According to Amugo, “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”