N100 per N20k withdrawal – List of 4 new ATM charges Nigerians will start paying from March 1
The Central Bank of Nigeria (CBN) has announced a major revision to its Automated Teller Machine (ATM) transaction fees, effectively eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
The apex bank, in a circular issued by acting Director of Financial Policy and Regulation Department, John Onojah, said the review of ATM transaction fees is aimed at addressing rising costs and improving efficiency in the banking sector.
This circular which applies to all banks and financial institutions operating in Nigeria will take effect from March 1, 2025.
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What are the 5 new charges for using ATM
According to the circular, the CBN has reviewed the ATM transaction fees stipulated under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The key changes include:
1. On-Us transactions (same bank’s ATM): Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals.
2. On-site ATMs (within bank premises): A fee of N100 per N20,000 withdrawal will apply.
3. Off-site ATMs (outside bank premises): A fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500, will be charged.
4. International withdrawals: The charge will be based on the exact amount imposed by the international acquirer.
What you should know
The most significant change is the complete removal of the previous policy that allowed bank customers three free monthly withdrawals on ATMs belonging to other banks. This means that every withdrawal on another bank’s ATM will now attract a charge.
The circular noted, “Furthermore, 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.”
Reasons for new ATM charges
The CBN cited rising costs and the need to enhance ATM efficiency as the primary reasons for the review. The regulator expects this adjustment to accelerate the deployment of ATMs across Nigeria while ensuring that financial institutions appropriately charge customers for the service.
The circular read, “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. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
This decision aligns with the CBN’s broader strategy to promote digital banking and reduce reliance on cash transactions, a move that has been a recurring theme in recent financial sector reforms.
