The North Journals
The Central Bank of Nigeria (CBN) has concluded all plans to review the transaction fees for Automated Teller Machine (ATM) services. The new charges will take effect on March 1, 2025.
In a circular signed by the acting director Financial Policy and Regulation Department, John Onojah, explained that the fee adjustment aims to address the rising operational costs and enhance efficiency within the banking sector.
Mr Onojah said the last time the ATM transaction fees were revised was in 2019 when the CBN reduced withdrawal fees from ₦65 to ₦35.
While the new policy will result in higher costs for certain ATM transactions, the Apex Bank emphasized that it aligns with Section 10(7) of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
Under the new structure, customers making withdrawals from their own bank’s ATMs (on-us transactions) will still enjoy free withdrawals. However, a ₦100 fee will be charged for every ₦20,000 withdrawal at on-site ATMs, which are located within the bank’s branches.
For withdrawals at ATMs of other banks (off-site or not-on-us transactions), customers will be charged a ₦100 fee plus a surcharge of up to ₦450 per ₦20,000 withdrawal.
On issues related to international withdrawals using debit or credit cards, the CBN said will allow banks and financial institutions to apply a “cost-recovery charge” equivalent to the exact amount charged by the international acquirer.
Additionally, the previous benefit of three free monthly withdrawals for remote-on-us transactions (customers of other banks) will no longer apply.
The circular urged all financial institutions to comply with the new directives ahead of the implementation date, emphasizing that the revised fees aim to improve the efficiency of ATM services and ensure that appropriate charges are applied to consumers.
