CBN Introduces Revised Charges for ATM Withdrawals

Since the Central Bank of Nigeria (CBN) has implemented new fees for both “on-site” and “off-site” ATM withdrawals, Nigerians will be subject to higher fees when making cash withdrawals.

Bank-owned ATM withdrawals made at locations other than their branch offices are referred to as on-site withdrawals, whereas ATM withdrawals performed at shopping malls, airports, or independent cash stations are referred to as off-site withdrawals.

John Onojah, Acting Director of the Financial Policy and Regulation Department, unveiled the updated fees in a circular on Monday. They will go into effect on March 1.

The change is the regulator’s most recent attempt to strike a compromise between the requirement for banking sector efficiency and growing operating costs.
“Section 10.7 of the current CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide) outlines the ATM transaction fees that the Central Bank of Nigeria (CBN) has reviewed in response to growing costs and the need to increase the effectiveness of ATM services in the banking sector.

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This evaluation is anticipated to expedite the rollout of automated teller machines (ATMs) and guarantee that financial institutions charge service users appropriately. It stated that banks and other financial institutions should implement the following fees starting on March 1, 2025.

A fee of N100 will now be applied for on-site ATM withdrawals, which are performed at a bank-owned machine outside of its branch location, under the revised structure.

There is a N100 cost for off-site ATM withdrawals, such as those made at malls, airports, or independent cash terminals, and a N500 surcharge for every N20,000 withdrawal, for a maximum potential charge of N600.

An account holder’s own bank’s ATM withdrawals are still free.

A cost-recovery methodology will be used by banks for international ATM transactions, charging customers the precise fees levied by the foreign acquirer.

The three free monthly withdrawals that were previously permitted for Remote-On-Us (clients of other banks or Not-On-Us) in Nigeria under Section 10.6.2 of the Guide will no longer be available, it was said.

As Nigerian banks struggle with growing operational costs, including as infrastructure upkeep and security, the action was taken.

Increased withdrawal fees may deter people from using ATMs and make them more dependent on cash transactions, especially in rural and semi-urban areas where most people still don’t use digital payments.

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