The Central Bank of Nigeria (CBN) has announced a revision of Automated Teller Machine (ATM) transaction fees, with the updated charges set to be implemented from March 1, 2025.
In a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN stated that the adjustments were necessary to manage rising operational costs and improve efficiency in the banking sector, according to Nairametrics.
The last revision of ATM fees occurred in 2019, when the CBN reduced withdrawal charges from ₦65 to ₦35.
While the new policy will increase costs for some ATM transactions, the CBN emphasized that the changes comply with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
Breakdown of the New ATM Charges:
- Withdrawals from Own Bank’s ATMs (On-Us Transactions): Customers can continue to withdraw for free, but withdrawals above ₦20,000 at on-site ATMs (inside bank branches) will now attract a ₦100 fee.
- Withdrawals from Other Banks’ ATMs (Off-Site or Not-On-Us Transactions): Customers will be charged ₦100 plus an additional surcharge of up to ₦450 per ₦20,000 withdrawal.
- International ATM Withdrawals: Banks and financial institutions can now apply a “cost-recovery charge” equal to the exact amount charged by the international acquirer.
- Removal of Free Monthly Remote-On-Us Withdrawals: The previous three free monthly withdrawals for customers using other banks’ ATMs will no longer be available.
CBN Justifies ATM Fee Review, Citing Rising Costs and Service Efficiency
The Central Bank of Nigeria (CBN) has defended its decision to revise ATM transaction fees, citing rising operational costs and the need to improve ATM service efficiency as key factors. The regulator expects that these changes will encourage the deployment of more ATMs across Nigeria while ensuring that financial institutions apply appropriate charges for their services.
In a statement from its circular, the CBN explained:
“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 CBN emphasized that this policy shift aligns with its broader strategy to promote digital banking and reduce dependence on cash transactions—a key focus of recent financial sector reforms.
Impact on Bank Customers
For bank customers, the new ATM fee structure will mean higher withdrawal costs, particularly for those who frequently use ATMs outside their bank’s network.
- Off-Site ATM Surcharges: With the introduction of additional charges on off-site ATMs (other banks’ ATMs), many customers may opt to withdraw from their own bank’s ATMs more often to avoid extra costs.
- Shift to Digital Banking: The changes could drive more customers toward alternative banking channels, such as mobile banking apps, internet banking, and digital wallets, to reduce reliance on cash withdrawals.
The CBN has directed all financial institutions to comply with the new fee structure ahead of the March 1 implementation. The regulator emphasized that these adjustments aim to improve ATM service efficiency while ensuring that charges remain fair and appropriate for consumers.
