Recently, the Central Bank of Nigeria (CBN) announced a major review of Automated Teller Machine (ATM) transaction fees. This review saw a significant increase in ATM transaction cost.
The CBN in a directive, signed by John S. Onojah, acting director of the Financial Policy and Regulation Department, and released on the apex bank’s website on Tuesday February 11, 2025, outlined a new cost regime for ATM usage that would take effect from March 1, 2025.
It is important to understand this change in order to avoid being caught in the web, as you try to hurriedly get some cash at any nearby ATM.
Here are things you must know about the new policy:
- The CBN has eliminated the three free monthly withdrawals previously granted to customers using other banks’ ATMs. So, if you are using any ATM that is not your bank’s even if for the first time in a day, you will be charged N100 for each N20,000 withdrawal you make.
- On-Us transactions (same bank’s ATM): Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals.
- Not-On-Us transactions (other banks’ ATMs): If you are using an ATM that is not your bank’s, the following rules will apply:
- On-site ATMs (within bank premises): If you are using an ATM that belongs to a different bank other than yours, but the ATM is located on the owner-bank premises, a you will pay a fee of N100 per N20,000 withdrawal.
- Off-site ATMs (outside bank premises): If you are using an ATM that is not your bank’s and is not located at the owner-bank premises, you will pay a fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500.
- International withdrawals: The charge will be based on the exact amount imposed by the international acquirer.
The most significant change is the complete removal of the previous policy that allowed bank customers three free monthly withdrawals on ATMs belonging to other banks. This means that every withdrawal on another bank’s ATM will now attract a charge.
It is also important to know that ATM transaction fees are stipulated under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
The reasons for the increase of ATM transaction charges according to the CBN, are rising costs and the need to enhance ATM efficiency. CBN expects this adjustment to accelerate the deployment of ATMs across Nigeria.
Nigerians can now expect presence of ATMs at most shopping malls, hotels, fuel stations, markets, schools, restaurants and other public utility locations.
