…Reassures Keystone Bank’s stability in spite court order
…Advises telecom operators against reliance on dollar
By Charles Ebi
Central Bank of Nigeria ,CBN, has clarified the newly reviewed N100 charge on withdrawals at another bank’s ATM ,Not-On-Us Transactions, stating that the fee applies whether or not the withdrawal amount is up to N20,000.
In a Frequently Asked Questions ,FAQs, document on the review of ATM transaction fees, the CBN explained that the reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals into smaller amounts.
“Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank ,a bank other than the one that issued your payment card. The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per transaction.
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof”, the document explains.
The CBN emphasized that banks are required to allow customers to withdraw up to N20,000 per transaction. “Any bank that compels a customer with sufficient funds in her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately”, the CBN warned.
The apex bank also encouraged consumers who are denied the right to withdraw up to N20,000 per transaction to file a complaint with the CBN via [email protected].
The CBN also provided an explanation of the difference between on-site and off-site ATMs: on-site ATMs are located within or directly affiliated with a bank branch, while off-site ATMs are found in locations such as shopping malls, fuel stations, or other public areas.
The CBN noted that banks and other financial institutions are not allowed to charge more than the N500 per N20,000 surcharge for an off-site ATM withdrawal prescribed in the earlier circular. These fees will be displayed at the point of withdrawal, allowing customers to make informed decisions before proceeding with the transaction.
For withdrawals outside Nigeria, the CBN stated that banks will apply a cost recovery fee, meaning the exact charge imposed by the international ATM acquirer will be passed on to the customer.
On Wednesday that 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.
This directive, outlined in a circular dated February 10, 2025, applies to all banks and financial institutions operating in Nigeria and is set to take effect from March 1, 2025.
The circular 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.
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.
Similarly, the apex Bank has assured the public that Keystone Bank Limited remains stable and fully operational despite a court order forfeiting the bank’s shares to the Federal Government.
In a statement issued on Friday by the bank’s acting Director of Corporate Communications, Mrs Hakama Sidi Ali, the apex bank acknowledged concerns over the development but maintained that there is no cause for alarm.
It emphasized that the stability of the banking sector and the safety of depositors’ funds remain top priorities.
“For clarity, the Court Order merely reaffirmed the Central Bank of Nigeria’s prior decision to take over the management of Keystone Bank Limited in January 2024, following a change in its leadership”, the statement read.
The CBN noted that it has since been monitoring the bank’s operations to ensure compliance with regulatory standards, operational transparency, and depositor protection.
“Since then, the CBN has closely monitored the bank’s operations to ensure they are in full compliance with regulatory standards, operational transparency, and the interests of depositors.
“As part of our commitment to safeguarding the financial system and building public trust, we shall continue to monitor the bank’s performance. We will take all necessary steps to protect the interests of depositors, staff, and stakeholders”, the regulator stated.
Customers were advised to direct inquiries to Keystone Bank’s customer support or visit any of its branches for further clarification.
The court-ordered forfeiture follows regulatory interventions in Nigeria’s banking sector, with the CBN moving to strengthen governance and ensure financial system stability.
Keystone Bank Limited had announced that it is now fully owned by the Federal Government of Nigeria, following the court’s dissolution of its former shareholder, Sigma Golf Nigeria Limited.
This was disclosed in the bank’s statement after the judgement by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, 2025, against Sigma, in a matter instituted by the Economic and Financial Crimes Commission ,EFCC.
Nairametrics also reported that the court convicted and ordered the winding up ,dissolution, of Sigma Golf Nigeria Limited in an alleged N20 billion fraudulent diversion case.
Justice Rahman Oshodi delivered the judgment in the case instituted by the EFCC against a former Managing Director of the Asset Management Corporation of Nigeria ,AMCON, Ahmed Kuru, and the company ,as a co-defendant.
The EFCC had arraigned Sigma Golf Nigeria Ltd and the former AMCON boss on a six-count amended charge bordering on alleged conspiracy and stealing.
The EFCC accused the defendants of converting AMCON’s N20 billion funds through Heritage Bank to Sigma Golf Nigeria Ltd for the acquisition of shares in Keystone Bank.
In related development the Governor of the Central Bank of Nigeria ,CBN. Olayemi Cardoso, has advised telecom operators to reduce their reliance on foreign exchange for their operations.
Cardoso urged the telecom providers to resort to backward integration in the telecommunications sector.
The apex bank’s boss said this during a courtesy visit to CBN headquarters by Airtel Africa’s management team, led by Group Chief Executive Officer Mr Sunil Taldar.
He emphasised the need to localise key supply chains while expanding financial services to benefit ordinary Nigerians.
Cardos “emphasised the need to reduce the sector’s reliance on foreign exchange”.
According to Cardoso, the CBN has “spent the past 16 months stabilising the foreign exchange market, strengthening the naira’s competitiveness, and boosting investor confidence in the Nigerian economy”.
He urged telecom firms to “embrace backward integration by producing essential components such as SIM cards, cables, and towers locally”.
He said this would ease dollar demand, create jobs and strengthen the economy.
The apex bank boss also highlighted the CBN’s broader vision of deepening financial inclusion and enhancing digital payment solutions for everyday Nigerians.
“The CBN is committed to ensuring that financial services reach more Nigerians, especially in rural and underserved communities. Through collaboration with relevant agencies and industry players, we aim to build a more inclusive and digitally driven financial ecosystem”, Cardoso said.
He told Airtel and other stakeholders that the CBN would take the necessary steps to create an enabling environment for financial service providers, fostering competition, innovation, and expanded access for Nigerians.
Responding to Cardoso, Airtel Africa’s Group CEO hailed CBN’s reforms and voiced support for backward integration.
He emphasised that reducing reliance on the dollar was in the mid- to long-term interest of telecom operators.
