The Central Bank of Nigeria (CBN) has announced a review of Automated Teller Machine (ATM) transaction fees, with the new charges set to take effect from March 1, 2025.
In a circular signed by John Onojah, the acting director of the Financial Policy and Regulation Department, the CBN stated that the ATM transaction fee charges was necessary to address rising operational costs and improve banking sector efficiency.
The last revision of ATM withdrawal fees occurred in 2019, when the CBN reduced charges from ₦65 to ₦35. However, under the newly revised structure, some transactions will now attract higher costs.
According to the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020), customers withdrawing cash from their own bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals. However, a new ₦100 fee will apply for every ₦20,000 withdrawal made at ATMs located within bank branches (on-site ATMs).
For withdrawals from ATMs of other banks (off-site or not-on-us transactions), customers will now be charged ₦100 plus a surcharge of up to ₦450 per ₦20,000 withdrawal.
Additionally, the three free monthly withdrawals for remote-on-us transactions (withdrawals from ATMs of other banks) have been scrapped, meaning customers will now incur charges from their very first transaction on non-bank ATMs.
For international withdrawals, the CBN has granted banks permission to apply a cost-recovery charge that reflects the exact amount imposed by the international acquiring institution. This means charges on foreign ATM withdrawals will now vary depending on the provider.
The CBN has instructed all financial institutions to ensure full compliance before the implementation date, stating that the fee adjustments are aimed at enhancing ATM service efficiency and ensuring that customers bear the appropriate costs for transactions.
