Abuja and Nume Ekeghe in Lagos — The Central Bank of Nigeria (CBN) has announced a revised framework for Automated Teller Machine (ATM) transaction fees, eliminating free interbank withdrawals and introducing charges of up to N600 per N20,000 withdrawals.
The new policy becomes effective from March 1, 2025.
In a circular signed by the Acting Director, Financial Policy and Regulation Department, John Onoja, the apex bank attributed the upward review of fees to rising operational costs and the need to improve service efficiency in Nigeria's banking sector.
Under the updated framework, bank customers withdrawing cash from an ATM operated by their own bank, which is commonly referred to as "On-Us" transactions, will continue to enjoy fee-free withdrawals. This means that customers using an ATM owned by their bank for cash withdrawals would not incur any additional charges.
However, withdrawals from ATMs belonging to other banks, classified as "Not-On-Us" transactions would now attract additional charges. Customers withdrawing cash from an ATM located within a bank's premises but operated by a different financial institution would be charged a fee of N100 per N20,000 withdrawal.
Furthermore, transactions conducted at off-site ATMs located outside banking premises, such as those found in shopping malls, airports, fuel stations, or other public locations, would incur a base charge of N100 per N20,000 withdrawal, in addition to a surcharge of up to N500 per transaction. This means that the total cost of withdrawing N20,000 from an off-site ATM that is not affiliated with the customer's bank could reach N600.
In a notable policy shift, the CBN also eliminated the three free monthly withdrawals previously granted to customers making "Remote-On-Us" withdrawals transactions where an individual withdraws cash from an ATM operated by a bank other than their own.
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It stated: "In response to rising costs and the need to improve efficiency of ATM services in the banking industry, the 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.
"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."
It added: "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. Please be guided accordingly."
For international ATM withdrawals, whether conducted via debit or credit cards, the CBN stipulated that customers would be charged the exact amount imposed by the international acquirer handling the transaction.
