CBN Introduces New ATM Transaction Fees, Effective March 2025.
The Central Bank of Nigeria (CBN) has announced a revision of Automated Teller Machine (ATM) transaction fees, set to take effect from 1st March 2025. This adjustment aims to enhance efficiency and encourage the deployment of more ATMs across the country.
In a statement signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN confirmed that the changes align 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
Under the revised structure:
“On-Us” Withdrawals (Same Bank ATMs)– Customers withdrawing from their own bank’s ATM will continue to enjoy free transactions.
On-Site ATM Withdrawals – Customers withdrawing from their bank’s ATM located at a branch will be charged ₦100 per ₦20,000 withdrawn.
“Not-On-Us” Withdrawals (Other Bank ATMs) – Withdrawals from an ATM belonging to another bank will now attract a ₦100 charge plus a surcharge of up to ₦500 per ₦20,000 withdrawn. The surcharge, which benefits the ATM deployer, will be clearly disclosed at the point of withdrawal.
International ATM Withdrawals– Charges on international withdrawals (using both debit and credit cards) will follow a cost-recovery model, meaning the exact fees imposed by the international acquirer will apply.
Key Changes: No More Free ATM Withdrawals on Other Banks’ ATMs
A significant update in the new policy is the removal of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs. The CBN’s circular explicitly states that this benefit, outlined under Section 10.6.2 of the 2020 Guide, will no longer apply.
CBN’s Rationale for the Changes
The CBN believes these adjustments will ensure fairness in ATM service costs and encourage further investment in the sector. Banks and financial institutions are required to implement the new charges by the stipulated date.
With these new regulations, customers may need to strategise their cash withdrawals to minimise fees, while banks and ATM operators are expected to improve service quality and availability across Nigeria.
