LIVE UPDATES
The Central Bank of Nigeria (CBN) has revealed a significant adjustment to its Automated Teller Machine (ATM) transaction fees, which will eliminate the three free monthly withdrawals that were previously available to customers using ATMs of other banks.
This directive, communicated in a circular dated February 10, 2025, will take effect from March 1, 2025, and applies universally to all banks and financial institutions across Nigeria.
The circular, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, was released on the central bank's website on Tuesday.
The circular read “the CBN has reassessed the ATM transaction fees specified in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The primary amendments consist of the following: On-Us Transactions (Same Bank’s ATM): Customers making withdrawals from their own bank's ATM will continue to have free withdrawals; Not-On-Us Transactions (Other Banks’ ATMs): For on-site ATMs (located within bank premises): a charge of N100 per N20,000 withdrawal will be applicable; for off-site ATMs (outside bank premises): a fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500, will be applicable; International Withdrawals: Charges will be contingent on the precise amount imposed by the international acquirer.
The most notable alteration is the abolition of the three free interbank ATM withdrawals permitted every month. Henceforth, any withdrawal from a different bank's ATM will incur a fee.
The circular distinctly states, “Additionally, 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 will no longer be valid.”
The CBN has attributed these changes to increasing operational costs and the necessity to enhance ATM efficiency nationally. The regulator is optimistic that the revised fee structure will hasten ATM deployment across the country while ensuring that financial institutions impose appropriate service charges.
The circular articulates, “In response to rising costs and the need to enhance the efficiency of Automated Teller Machine (ATM) services within the banking sector, the Central Bank of Nigeria (CBN) has reassessed the ATM transaction fees outlined in Section 10.7 of the current CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide). This assessment is anticipated to accelerate ATM deployments and ensure that financial institutions apply suitable fees to service consumers. Consequently, banks and other financial institutions are advised to implement the following fees effective March 1, 2025.”
This initiative is in line with the CBN’s broader strategy to encourage digital banking and diminish reliance on cash transactions, a recurring theme in recent financial sector reforms. For bank customers, the updated fees mean higher withdrawal expenses, particularly for those who frequently use ATMs outside their banking network. The extra surcharges on off-site ATMs may also prompt customers to prefer their own bank’s ATMs or transition to digital banking options like mobile and internet banking.
As the implementation date on March 1, 2025, approaches, financial institutions are expected to update their systems and inform customers regarding the revised fees.
