Nigerian banks begin to charge N100 for using ATM, N600 for withdrawing at malls, fuel stations, others
Nigerian commercial banks have commenced charging N100 for transactions on their Automated Teller Machines (ATM) following an update to the guidelines issued by the Central Bank of Nigeria (CBN).
This development was announced by the Central Bank of Nigeria in a circular dated February 10, 2025 on the review of ATM transaction fees, scheduled for implementation from today, March 1, 2025.
Under the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge.
However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
CBN later revealed that Nigerians withdrawing less than N20,000 from another bank’s ATM will still be charged a fee of N100 per transaction.
Speaking on the move, CBN governor Olayemi Cardoso said while it may initially appear as another economic challenge due to increasing tariffs, the decision aims to improve access to cash.
“This actually came as a result of efforts deployed when there was a shortage of currency, especially towards the Christmas period, and when people were experiencing undue hardship,” the economist said.
“We were meeting regularly, and I chaired a commitee that convened daily to devise short, medium, and long-term solutions. The banks must be incentivised to ensure regular ATM availability so that people can access their money conveniently.
“While the situation has improved significantly, more needs to be done to make cash withdrawals seamless. If we are planning for the future, certain costs must be absorbed, and this is one of them.
“My view is that it will not dissuade people from accessing their money easily. Instead, it should encourage banks to ensure better service, especially where fees are charged for withdrawals.
“The good news is that withdrawing from your own bank remains free. If you frequently use another bank’s ATM, you can apply for a card with that bank to avoid charges.
“This measure will encourage the expansion of ATM services and make cash access easier.
“It will also discourage those who have exploited gaps in the system to charge exorbitant fees for cash withdrawals. Over time, this practice will be eliminated.”
‘Naire more competitive, attracting international investors – Cardoso
Cardoso said the naira has become more competitive, attracting increased interest from international investors.
“Our currency is much more competitive, and as a result, we have seen greater interest from international investors looking to invest in Nigeria’s future,” he said.
The CBN governor as stability is maintained, the country would begin to witness more investment inflows, which are essential to spur the badly needed growth.
He reiterated that the CBN is focused on achieving stability in the foreign exchange (FX) and financial markets.
