The Central Bank of Nigeria (CBN) has adjusted ATM transaction fees to address rising operational costs and improve the efficiency of cash withdrawal services. This update is also expected to encourage banks to deploy more ATMs while maintaining fairness and transparency in charges for customers.
When Will the New Fees Take Effect?
The revised ATM transaction fees will be implemented starting March 1, 2025. All banks and financial institutions must comply with the directive outlined in the CBN’s circular, ‘Review of Automated Teller Machine Transaction Fees’, dated February 10, 2025.
Will There Be Charges for Withdrawals at My Bank’s ATM?
No. Withdrawals from your bank’s own ATM (On-Us transactions) remain free of charge. This applies regardless of whether the ATM is inside a bank branch or in a different location (off-site).
What Are the New ATM Withdrawal Charges?
- On-Us Transactions (Withdrawals at your bank’s ATM): No charge.
- Not-On-Us Transactions (Withdrawals at another bank’s ATM):
- On-site ATMs: N100 per N20,000 withdrawal.
- Off-site ATMs: N100 per N20,000 withdrawal, plus a surcharge of up to N500, which will be displayed before you complete the transaction.
- International Withdrawals: Fees will depend on the exact cost charged by the international ATM acquirer.
What’s the Difference Between On-Site and Off-Site ATMs?
- On-Site ATMs: Located within or directly affiliated with a bank branch.
- Off-Site ATMs: Positioned outside a bank’s premises, such as in shopping malls, fuel stations, or other public areas.
What Happens If I Withdraw Less Than N20,000?
The N100 fee still applies, even if you withdraw less than N20,000 from another bank’s ATM. This structure prevents customers from splitting their withdrawals into multiple smaller transactions to avoid charges.
Additionally, for withdrawals exceeding N20,000, an extra N100 will be charged for each additional N20,000 or part thereof.
Are the Three Free Monthly Withdrawals for Remote-On-Us Customers Still Available?
No. Under the new policy, Remote-On-Us customers (those withdrawing from another bank’s ATM) will no longer receive three free monthly withdrawals.
How Will Customers Know the Surcharge Before Withdrawing?
For off-site ATM withdrawals, the surcharge (up to N500 per N20,000) will be displayed on the ATM screen before the transaction is completed. This ensures customers can make an informed decision before proceeding.
How Will This Affect Customers Who Frequently Use Other Banks’ ATMs?
Customers who frequently withdraw cash from other banks’ ATMs will need to pay per transaction, and those using off-site ATMs will incur additional surcharges.
Can Banks Charge More Than the Stated Fees?
No. Banks and financial institutions cannot exceed the fees specified by the CBN. However, they have the flexibility to charge lower fees if their cost structure allows.
How Can Customers Avoid ATM Fees?
To avoid additional charges, customers should:
- Use their bank’s ATMs for cash withdrawals.
- Limit withdrawals from off-site ATMs to reduce surcharges.
- Consider alternative payment options like mobile banking apps, POS transactions, and online transfers.
How Much Will International ATM Withdrawals Cost?
For withdrawals outside Nigeria, banks will charge a cost recovery fee, meaning customers will pay exactly what the international ATM acquirer charges.
What If a Bank Restricts Withdrawals to Less Than N20,000?
The CBN’s policy assumes that banks will allow withdrawals of up to N20,000 per transaction. Any bank that forces customers to withdraw lower amounts despite sufficient funds will be violating this regulation and could face sanctions.
How Can Customers Report Violations?
Customers who experience difficulties withdrawing up to N20,000 per transaction can file a complaint with the CBN at cpd@cbn.gov.ng.
