The Central Bank of Nigeria has directed banks to ensure that customers have access to cash at Automated Teller Machines as the new ATM transaction fees take effect on March 1.

This was disclosed by the Acting Director of the Financial Policy and Regulation Department, John Onoja, during an interview on Arise TV on Tuesday.

According to a CBN circular dated February 10, 2025, the apex bank has revised ATM transaction fees, effective March 1, 2025.

Under the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge. However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.

Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction. For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.

Speaking on the policy, John Onoja explained that the fee adjustments were driven by rising operational costs.

He stated, “It’s also one side on the part of the financial institution, so that they’ll be able to also keep up with the cost of doing business and then offer value services to the customers, and also on the side of the customer, it is to be sure that they’re going to have very quality service and value-added services from their bankers.”

Onoja further said, “There are professional ways of dealing with excess liquidity in this system in Nigeria. The CBN, as the apex monetary policy body in Nigeria, has different tools to deal with that. So, if it is to reduce cash in circulation as a result of inflation and all of that. I’m sure the Central Bank has better tools to use and is not going through the ATM issues. So, it is not in any way to reduce money in circulation. Rather, it is to even make the money available to those who need it.

“We all know that the other channels that are available to customers and those who do business to transact, the electronic channels, are there. It’s important to ensure those who are especially in the remote areas, those who come to the ATMs and don’t find cash, are assured that banks provide cash at the ATMs so that you, as a customer, can go to the machine and get cash. It’s in no way an attempt to reduce cash.

“Cashless does not mean no cash; just like you said, it is relying less on cash and using other ways, other means of transaction business. We know that you can use your cards on merchant PoS to make purchases. You can use that to make payments in almost all transactions and wherever you think you need payment. But that does not cancel the fact that some persons may need the raw cash in their pocket, and so the ATM is available for you to be able to have that access to cash. I’ve seen on two or three occasions in the past few days that the Central Bank of Nigeria is concerned with access to cash, and because of that, they are working assiduously.”

Onoja emphasized that the CBN’s priority is ensuring Nigerians have access to legitimate cash when needed.

He stated that a committee is working on an access-to-cash policy to address this concern, particularly for people in remote areas, individuals in locations with limited technology or digital payment options

He noted that thee goal is to ensure that those who rely on cash transactions can access funds without difficulty.

Onoja further stated that banks must ensure their customers have access to cash through various outlets, reinforcing the CBN’s commitment to cash availability across the country.

“Central Bank of Nigeria is not deploying ATMs because we do not have retail customers like individuals, as it were, so the ATMs are outlets to make a value available to their customers to be able to have access to cash. The over-the-counter position is there, but not everybody will need to go to the banking hall to be able to get cash, especially when the volume is very small. And so, it is the responsibility of the commercial banks to deploy outlets where their customers will be able to access cash when they need it, and if the machines are not available to their customers, that is where their customers will need to use the machines provided by other banks, and that is where the issue of paying 100 naira, as the case may be, will come in.”