New transaction fees for Automated Teller Machines (ATMs) have been announced by the Central Bank of Nigeria (CBN), and they will go into effect on March 1, 2025.
The higher charges are intended to manage rising operational costs and improve the effectiveness of banking services, according to a circular signed by John Onojah, acting director of the financial policy and regulation department.
Since the CBN lowered the withdrawal cost from N65 to N35 in 2019, this review represents the first modification to ATM transaction rates.
According to CBN statement, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service,”
Transactions both domestically and internationally will be impacted by the updated fees.
Under the new structure, an ATM used by a customer’s own bank will continue to be free.
On-site ATM withdrawals, however, will incur a fee of N100 for each N20,000 taken out.
Customers will be charged N100 plus a surcharge of up to N500 per N20,000 when they make an off-site withdrawal from an ATM operated by another bank.
The former clause that permitted consumers to make three free withdrawals per month from ATMs operated by other banks has been eliminated by the CBN.
“The three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”