The Central Bank of Nigeria (CBN) has scrapped free withdrawals for off-network ATM transactions and introduced new charges that will take effect from March 1, 2025.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Under the revised policy, bank customers will now pay N100 per N20,000 withdrawn from an off-network ATM, in addition to a surcharge of up to N500 per N20,000 for transactions conducted at off-site ATMs.
The policy change was detailed in a circular issued by the apex bank on Monday.
This is a departure from the previous structure introduced in 2019 when the CBN reduced ATM withdrawal fees from N65 to N35.
According to the circular, the revision was made “in response to rising costs and the need to improve (the) efficiency of Automated Teller Machine (ATM) services in the banking industry.”
While the new charges will apply to transactions made at ATMs operated by other banks, customers withdrawing money from their own bank’s ATM—known as on-us transactions—will continue to enjoy free withdrawals.
The CBN also confirmed that “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.” This means that all off-network withdrawals will now attract fees, regardless of frequency.
Also, the circular specified that for international transactions conducted using debit or credit cards, banks will now apply a cost-recovery charge equivalent to the exact fee imposed by the international acquirer.
Speaking on the rationale behind the policy, John S. Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, explained “This review is expected to accelerate the deployment of ATMs across the country and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
He further noted, “While our previous adjustments in 2019, which reduced ATM withdrawal fees from N65 to N35 and allowed three free monthly withdrawals for off-network transactions, helped lower costs for consumers, the increasing expenses involved in maintaining ATM services necessitate these new measures.”
The revised charges are expected to impact millions of Nigerians who rely on ATMs for cash withdrawals, particularly in areas where bank branches are scarce. With the new surcharge, frequent users of off-network ATMs may face increased banking costs as financial institutions comply with the updated ‘CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020’.
As the implementation date approaches, banks will be required to adjust their systems accordingly, ensuring full disclosure of the surcharges at the point of withdrawal. The new policy reflects the CBN’s broader efforts to regulate banking fees while balancing operational costs in Nigeria’s financial sector.
