The news
- The Central Bank of Nigeria (CBN) has reviewed the Automated Teller Machine (ATM) transaction fees for national and international withdrawals.
- The review applies a transaction fee of at least ₦100 per ₦20,000 withdrawal on ATMs not belonging to a customer’s financial institution.
On February 10, 2025, the CBN released a circular informing all banks and financial institutions that it will be implementing a review of the current ATM transaction fees.
According to the Bank, the review is in response to rising costs and the need to improve the efficiency of ATM services in the banking industry. The CBN in the circular informed financial institutions that the review is expected to “accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
It had in September 2024 announced that banks that failed to load their ATMs with cash would be penalised. The previous withdrawal fees, which included three free withdrawals per month at ATMs of other financial institutions and a ₦65 charge for each subsequent withdrawal, will no longer apply.
The new transaction fees will take effect from March 1, 2025. The CBN identified three categories of transaction fees for review.
On-Us, which refers to customers withdrawing at the ATM of their financial institutions in Nigeria, will not attract a transaction fee.
Not-On-Us, which refers to customers withdrawing from an ATM belonging to another financial institution in Nigeria, will attract a charge of ₦100 per ₦20,000 withdrawal when the ATM is on the financial institution’s site. However, withdrawals at off-site ATMs (third-party premises) will attract a charge of ₦100 and a surcharge of not more than ₦500 per ₦20,000 withdrawal. The surcharge is intended as an income of the ATM deployer/acquirer and must be disclosed to the customer at the point of withdrawal.
For international withdrawals with debit or credit cards, the fee attracted will be commensurate with the exact charge by the international acquirer.
As part of the review, the CBN has also discontinued the three free monthly withdrawals, which previously allowed customers to withdraw from the ATMs of other financial institutions without being charged transaction fees three times a month. Now, every withdrawal from an ATM that does not belong to a customer’s bank will attract a fee.
The Central Bank of Nigeria (CBN) has long prioritised the improvement of cashless transactions. While significant progress has been made, cash payments remain widespread. The expansion of POS agents, for instance, has made financial services more accessible, but it has also eased access to cash. Nevertheless, the increasing costs associated with withdrawing cash at POS terminals and ATMs may push more individuals toward adopting digital payment methods.
