By Charles Ebi
Central Bank of Nigeria has imposed a withdrawal fee between N100 to N600 for every N20,000 worth of interbank ATM withdrawals.
The new policy eliminates the three free monthly withdrawals that customers enjoy on interbank ATM withdrawals.
According to a CBN circular, FPR/DIR/GEN/CIR/001/002 with title, ‘Review of Automated Teller Machine Transaction Fee’, dated February 10, 2025, the new fees will take effect March 1, 2025.
It was signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, and released on the apex bank’s website on Tuesday.
“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”, the apex bank said.
The CBN said customers withdrawing at the ATM of their financial institution in Nigeria will not be charged.
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: The charge will be based on the exact amount imposed by the international acquirer.
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”.
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.
For bank customers, this development means an increase in withdrawal costs, particularly for those who rely on ATMs outside their banks’ networks.
The introduction of additional surcharges on off-site ATMs also suggests that customers may opt to use their own bank’s ATMs more frequently or explore alternative digital banking options such as mobile and internet banking.
With the March 1, 2025 implementation date approaching, financial institutions are expected to update their systems and notify customers about the new charges.
