CBN Reviews ATM Transaction Fees, Scraps Free Withdrawals

Wednesday, February 12, 2025

The Central Bank of Nigeria (CBN) has announced a review of ATM transaction fees, introducing new charges that will take effect from March 1, 2025.

In a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN outlined key changes aimed at addressing rising operational costs and enhancing efficiency in the banking sector.

Key Highlights of the New Policy:

1. On-Us Transactions (Same Bank ATMs):

   • Customers will continue to enjoy free withdrawals when using ATMs of their own banks.

2. On-Site ATMs (Located at Bank Branches):

   • A N100 fee per N20,000 withdrawal will be applied.

3. Not-On-Us Transactions (Other Banks' ATMs):

   • Withdrawals at other banks’ ATMs will now attract:

     • A N100 fee per N20,000 withdrawal.

     • An additional surcharge of up to N450 per N20,000 withdrawal.

     • The surcharge is the income of the ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.

4. International Withdrawals:

   • Banks and financial institutions can now apply a cost-recovery charge equivalent to the exact amount charged by the international acquirer for debit and credit card withdrawals.

5. Remote-On-Us Transactions (Withdrawals at Other Banks’ ATMs):

   • The three free monthly withdrawals previously allowed under Section 10.6.2 of the banking guide have been removed.

Why the Review?

The CBN stated that the adjustments are necessary to address increasing operational costs and ensure a more efficient banking system.

The last revision of ATM withdrawal charges was in 2019, when the CBN reduced interbank ATM withdrawal fees from N65 to N35. With the latest update, customers will now face higher costs for withdrawals, particularly at off-site and other banks' ATMs.

Stay tuned for more updates as the policy takes effect next month.