The Central Bank of Nigeria (CBN) has announced a revision of transaction fees for Automated Teller Machines (ATMs), with the new charges set to take effect on March 1, 2025.
The move, detailed in a circular signed by the acting director of the financial policy and regulation department John Onojah, is aimed at addressing rising operational costs and enhancing the overall efficiency of the banking sector.
The last review of ATM charges occurred in 2019, when the CBN reduced withdrawal fees from N65 to N35. The new policy, which marks a departure from that reduction, will see Nigerians paying more for ATM transactions. However, the CBN has stated that the revised fees align with Section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions” (2020).
“In response to rising costs and the need to improve the efficiency of ATM services in the banking industry, the CBN has reviewed the ATM transaction fees as prescribed in the extant guide. This review is expected to expedite the deployment of ATMs and ensure that appropriate charges are applied to consumers,” the CBN said in the circular.
Under the new policy, customers making withdrawals at their bank’s own ATMs (on-us transactions) will continue to enjoy free withdrawals. However, a N100 fee will be charged for each N20,000 withdrawn at ATMs located at bank branches (on-site ATMs). For transactions at ATMs of other banks (off-site or not-on-us transactions), customers will face a N100 fee, along with an additional surcharge of up to N450 per N20,000 withdrawal.
The CBN clarified that the surcharge, which will be levied on off-site withdrawals, is considered income for the ATM deployer and must be clearly disclosed to customers at the time of withdrawal.
For international withdrawals made with debit or credit cards, the CBN now permits banks and financial institutions to apply a “cost-recovery charge” equivalent to the exact amount charged by the international acquirer.
Additionally, the three free monthly withdrawals for Remote-On-Us transactions (i.e., withdrawals made by customers of other banks) will no longer be applicable under Section 10.6.2 of the Guide.
The CBN has urged all financial institutions to ensure compliance with these new fees in preparation for the implementation on March 1, 2025.
