The Central Bank of Nigeria (CBN) has announced a review of transaction fees for automated teller machines (ATMs) nationwide.
The modification basically eliminates the three free monthly withdrawals that were previously available to clients using other banks’ ATMs.
This was reported in a circular issued by the Acting Director of the Financial Policy and Regulation Department, John Onojah, on Tuesday. It applies to all Nigerian banks and financial institutions and will take effect on March 1, 2025.
According to the apex bank, the study attempts to address rising operational expenses and improve efficiency in the banking industry.
The most important change is the entire repeal of the former policy, which permitted bank clients to make three free monthly withdrawals from rival banks’ ATMs. This means that any withdrawal from another bank’s ATM will now incur a charge.
The notification stated, “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.”
The CBN cited increased expenses and the need to improve ATM efficiency as the main reasons for the review.
The regulator expects this change to hasten the rollout of ATMs throughout Nigeria while ensuring that financial institutions charge clients fairly for the service.
The circular stated, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the current CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“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.”
Hereunder are key changes under the recent CBN review:
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):
On-site ATMs (within bank premises): A fee of N100 per N20,000 withdrawal will apply.
Off-site ATMs (outside bank premises): A fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500, will be charged.
International withdrawals: The charge will be based on the exact amount imposed by the international acquirer.
