The Central Bank of Nigeria has revised ATM transaction fees, eliminating the three free monthly withdrawals previously available to customers using other banks’ ATMs.
This update was announced in a circular signed by the Acting Director of the Financial Policy and Regulation Department, published on the CBN’s website on Tuesday.
According to the circular, dated February 10, 2025, the directive applies to all financial institutions and will take effect from March 1, 2025. The revision falls under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).
On-Us Transactions (Same Bank’s ATM): Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals.
Not-On-Us Transactions (Other Banks’ ATMs):
On-Site ATMs (Within Bank Premises): A fee of ₦100 per ₦20,000 withdrawal will apply.
Off-site ATMs (outside bank premises): A fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500, will be charged.
Off-Site ATMs (Outside Bank Premises): A fee of ₦100 per ₦20,000 withdrawal, plus an additional surcharge of up to ₦500.
International Withdrawals: Charges will be based on the exact amount imposed by the international acquirer.
The circular noted, “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.”
The CBN attributed the review to rising costs and the need to improve ATM efficiency. It expects the changes to encourage wider ATM deployment across Nigeria while ensuring fair service charges by financial institutions.
The circular read, “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.”
This decision aligns with the CBN’s broader strategy to promote digital banking and reduce reliance on cash transactions, a move that has been a recurring theme in recent financial sector reforms.
