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.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
The directive, issued in a circular dated February 10, 2025, applies to all banks and financial institutions in Nigeria and is set to take effect from March 1, 2025.
The circular, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, was published on the apex bank’s website on Tuesday.
According to the circular, the CBN has reviewed the ATM transaction fees outlined in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The key changes include: On-Us Transactions (Same Bank’s ATM): Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals; Not-On-Us Transactions (Other Banks’ ATMs): On-site ATMs (within bank premises): A fee of N100 per N20,000 withdrawal will apply; 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; International Withdrawals: Charges will be based on the exact amount imposed by the international acquirer.
The most significant change is the removal of the three free interbank ATM withdrawals previously allowed each month. Going forward, every withdrawal from another bank’s ATM will attract a charge.
The circular explicitly states, “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.”
The CBN attributes the changes to rising operational costs and the need to improve ATM efficiency across the country. The regulator believes the new fee structure will accelerate ATM deployment nationwide while ensuring that financial institutions apply appropriate service charges.
The circular explains, “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.”
The move aligns with the CBN’s broader strategy to promote digital banking and reduce dependence on cash transactions, a recurring theme in recent financial sector reforms.
For bank customers, the revised charges translate to higher withdrawal costs, especially for those who frequently use ATMs outside their bank’s network. The additional surcharges on off-site ATMs may also encourage customers to prioritise their own bank’s ATMs or switch to digital banking alternatives such as mobile and internet banking.
With the March 1, 2025 implementation date fast approaching, financial institutions are expected to update their systems and notify customers about the revised charges.
