By Francis Ajuonuma
The country’s economic hardships look far from over. Effective March 1, 2025, Nigerians will pay more for Automated Teller Machine (ATM) withdrawals.
This follows yesterday’s announcement by the Central Bank of Nigeria (CBN) to introduce new charges of N100 and N500 respectively on N20,000 withdrawals while scrapping the three free monthly withdrawals previously granted to banks’ customers using other banks’ Automated Teller Machines (ATMs).
In a statement signed by the acting director of the CBN’s financial policy and regulation department, John Onojah stressed that the revised charges will take effect on March 1.
The regulator said the move would address rising operational costs and enhance efficiency in the banking sector.
The last time ATM transaction charges were reviewed was in 2019 when the CBN reduced the withdrawal fees from N65 to N35.
While the latest increase means Nigerians will pay more for more ATM transactions, the apex bank said the review aligns with Section 10.7 of the ‘CBN guide to charges by banks and other financial and non-bank financial institutions (2020)’.
“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),” CBN said.
“This review is expected to accelerate the deployment of ATMs and ensure that financial institutions apply appropriate charges to consumers of the Service.
“Accordingly, banks and other financial institutions are advised to apply the following fees from March 1, 2025.”
According to the new policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.
The CBN said for off-site ATMs — automated teller machines not on a bank’s premises – like those at shopping malls, eateries and other public places — a surcharge of not more than ₦500 per every ₦20,000 will apply in addition to the statutory ₦100 fee for withdrawals by customers of other banks’ ATMs.
The CBN clarified that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.”
For international debit or credit card withdrawals, the CBN said banks and financial institutions are now permitted to apply “a cost-recovery charge equivalent to the exact amount charged by the international acquirer.”
“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,” CBN added.
The apex bank urged all financial institutions to comply with the new directives before implementation.
