The Central Bank of Nigeria (CBN) has announced an increase in ATM withdrawal fees, citing rising operational costs and the need for greater efficiency in the banking sector.
The revised charges, outlined in a circular signed by John Onojah, acting director of the financial policy and regulation department, will take effect from March 1, 2025. This marks the first adjustment to ATM charges since 2019, when withdrawal fees were reduced from N65 to N35.
Under the new policy, customers withdrawing cash from ATMs operated by their own banks (on-us transactions) will still enjoy free withdrawals. However, for withdrawals at ATMs located within bank branches (on-site ATMs), a fee of N100 per N20,000 will now apply.
For customers using ATMs of other banks (Not-on-Us transactions), fees will be significantly higher. Withdrawals at off-site ATMs (those not located at a bank branch) will attract a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal. The CBN clarified that this surcharge is the income of the ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.
Additionally, for international ATM withdrawals using debit or credit cards, banks and financial institutions will now be allowed to apply a cost-recovery charge equivalent to the exact amount charged by the international acquirer.
A major change in policy is the removal of the three free monthly withdrawals previously allowed for customers using ATMs of other banks within Nigeria. This means all withdrawals at non-home bank ATMs will now incur charges.
The CBN has directed all financial institutions to comply with the new rules ahead of the implementation date.