CBN increases ATM charges to 100 Naira

The Central Bank of Nigeria (CBN) has announced an overhaul of ATM transaction fees, effective March 1, 2025, according to a circular distributed to banks and financial institutions on February 10, 2025. The three free monthly withdrawals that were previously available to customers to use ATMs operated by other banks have been effectively removed as a result of a significant change to the Central Bank of Nigeria’s (CBN) Automated Teller Machine (ATM) transaction fees.

CBN’s Rationale for Fee Review

The CBN made this decision in an effort to improve the effectiveness of ATM services across the country and address rising operational costs in the banking industry. According to the circular, the regulatory body wants to “accelerate the deployment of ATMs” and guarantee fair pricing for customers. This review comes after the CBN announced in September 2024 that banks would be penalized for having empty ATMs. The previous fee structure will be replaced. It included three free monthly withdrawals from ATMs operated by other banks, after which each additional withdrawal would cost ₦65.

ATM fee structure breakdown

Customers will continue to be able to use the ATMs of their own bank for “On-Us” transactions at no cost. There is a ₦100 fee for each ₦20,000 withdrawn from an ATM operated by another bank that is on that bank’s property when making “Not-On-Us” transactions, the post added.

Off-site withdrawals (at third-party ATMs) will also be ₦100 per ₦20,000, plus a surcharge up to ₦500 per ₦20,000. This surcharge goes to the ATM operator and must be clearly displayed to the customer during the transaction. International ATM withdrawals using debit or credit cards will be priced according to the international acquirer’s charges.

Banks and other financial institutions can now apply a “cost-recovery charge” for international ATM withdrawals that is equal to the precise amount that the foreign acquirer charged. Lastly, termination of free monthly remote-on-us withdrawals. Customers who previously used ATMs operated by other banks will no longer be able to make the three free monthly withdrawals.

Impact on cashless transactions

The expansion of cashless transactions in Nigeria has been continuously supported by the CBN. Despite advancements, cash is still the most common form of payment. In addition to increasing access to financial services, the growth of POS agents has made cash withdrawals easier. However, the growing costs of cash withdrawals at ATMs and POS terminals may encourage more people to use digital payment methods.

Frequently asked questions (FAQ): What you need to know about the new ATM transaction fees.

• Why has the CBN reviewed ATM transaction fees? The CBN has reviewed ATM transaction fees in an effort to improve the effectiveness of ATM services throughout the banking sector and address growing operating expenses. With fair and transparent fees for consumers, this change seeks to promote the deployment of additional ATMs.
• When are the new fees for ATM transactions going to be implemented? As instructed by the CBN, the updated ATM transaction fees will go into effect on March 1, 2025. The CBN circular on the “Review of Automated Teller Machines Transaction Fees” dated February 10, 2025, must be followed by all banks and financial institutions as of this date.
• When I take money out of the ATM at my bank, will I be charged? No, you won’t be charged for on-us withdrawals made from your bank’s own ATMs.
• What if I take out money from my bank’s off-site ATM? Will I be charged because it’s off-site? No, you won’t be charged for on-us withdrawals made from your bank’s own ATMs. Customers of the bank that deployed the ATM are unaffected by its location.
• What differentiates off-site ATMs from on-site ones? ATMs situated within or directly connected to a bank branch are known as on-site ATMs. Stated differently, the ATMs are located on the bank’s property. Off-site ATMs are located outside of a bank’s physical location, like in shopping centers, gas stations, or other public spaces.
• It was mentioned that a base fee of 100 naira per 20,000 naira is applied to Not-On-Us transactions, which are withdrawals made at an ATM operated by a different bank. Will the 100 Naira fee be charged if I withdraw less than 20,000 Naira? Yes, if you withdraw less than 20,000 Naira from a bank other than the one that issued your payment card, you will be charged a fee of 100 Naira. The reason for applying the fee for every 20,000 Naira withdrawal is to prevent customers from being compelled to break their withdrawals to less than 20,000 Naira per withdrawal. In other words, ATM transactions will incur a base fee of 100 Naira per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding 20,000 Naira, with an additional 100 Naira charged for each subsequent withdrawal of 20,000 Naira or portion thereof.
• Will the tree free monthly withdrawals for Remote-On-Us customers still apply? No. The three (3) free monthly withdrawals allowed for Remote-On-Us customers (those withdrawing from other banks ATMs) will no longer apply under the new review.
• It seems the terms “Not-on-us” and “Remote-on-us” are being used interchangeably. Is this the case? Indeed, transactions at an ATM that are not affiliated with the bank that issued the payment card are referred to by these terms.
• How can I find out how much the surcharge is for an ATM withdrawal made off-site? The surcharge (up to 500 Naira per 20,000 Naira) will be displayed at the point of withdrawal, allowing customers to make an informed decision before proceeding with the transaction.
• What impact will this have on customers who regularly use ATMs at other banks to make withdrawals? Customers who regularly use ATMs at other banks will be charged for each withdrawal starting on the circular’s effective date. Additionally, if they make a withdrawal from an off-site ATM, they might be charged more.
• Can banks in Nigeria charge more than the stated fees? No. The changes and surcharges are capped. As a result, banks and other financial organizations are prohibited from charging more than the amounts specified in the circular. Notably, a bank may choose to charge a lower amount based on its cost structure and business development goals, even though the surcharge per transaction is capped.
• How can I avoid ATM transaction fees in Nigeria? You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees. Additionally, limiting your use of off-site ATMs is advisable to minimize the surcharge. Customers can also explore other payment methods like mobile apps, point-of-sale devices (POS), etc.
• How much will I be charged for international withdrawals using my ATM? Banks will apply a cost recovery fee for withdrawals made outside of Nigeria, which means the customer will be charged the full amount imposed by the foreign ATM acquirer.
• Why if a bank fails to allow customers to withdraw up to 20,000 Naira per transaction? The fees are based on banks allowing customers to withdraw up to 20,000 Naira per transaction. Any bank in Nigeria that compels a customer with sufficient funds in her account to withdraw less than 20,000 Naira per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctions appropriately.
• How will customers report contraventions of these regulations by banks in Nigeria? Consumers denied the right to withdraw up to 20,000 Naira per transaction are encouraged to file a complaint with the CBN using the email cpd@cbn.gov.ng.
• How can I contact CBN for more information? You can contact CBN using their social media platforms on Instagram (centralbankng), X, formerly known as Twitter (cenbank), Facebook (cenbankng), LinkedIn (Central Bank of Nigeria), or YouTube. You can also call 08176657060 or send an email to contactcbn@cbn.gov.ng.
• What is the website for CBN? www.cbn.gov.ng