The Central Bank of Nigeria (CBN) recently announced a review of Automated Teller Machine (ATM) transaction fees for both national and international withdrawals. This review, set to take effect on March 1, 2025, aims to address rising costs and enhance the efficiency of ATM services in the banking industry.
Under the new fee structure, customers making withdrawals at ATMs not belonging to their financial institution will be charged a minimum fee of ₦100 per ₦20,000 withdrawal. The previous policy of three free withdrawals per month at other financial institutions’ ATMs, followed by a ₦65 charge for subsequent withdrawals, has been discontinued.
The CBN has categorized transaction fees into three groups for review. “On-Us” transactions, where customers withdraw from their own bank’s ATMs, will not incur any fees. “Not-On-Us” transactions, where customers use ATMs from other financial institutions in Nigeria, will be subject to a ₦100 fee per ₦20,000 withdrawal on-site. Off-site withdrawals will incur a ₦100 fee and a surcharge of up to ₦500 per ₦20,000 withdrawal.
For international withdrawals using debit or credit cards, fees will be based on the charges imposed by the international acquirer. Additionally, the CBN has eliminated the three free monthly withdrawals previously allowed at other banks’ ATMs, making all non-bank ATM withdrawals subject to fees.
The CBN’s focus on improving cashless transactions aligns with its efforts to promote digital payment methods and reduce reliance on cash. While the expansion of Point of Sale (POS) agents has increased access to financial services, the costs associated with cash withdrawals at ATMs and POS terminals may incentivize individuals to embrace digital payments further.
Overall, the CBN’s review of ATM transaction fees reflects its commitment to enhancing banking services and promoting a cashless economy in Nigeria. As these changes come into effect, customers and financial institutions will need to adapt to the new fee structure and explore alternative payment methods to navigate the evolving financial landscape.
