The Central Bank of Nigeria (CBN) has announced a significant revision to its Automated Teller Machine (ATM) transaction fees, effective March 1, 2025.
In a circular dated February 10, 2025, the apex bank eliminated the three free monthly withdrawals previously allowed for customers using other banks' ATMs which means that every withdrawal made from another bank's ATM will now incur a charge.
Withdrawals from a customer's own bank ATM will remain free. However, for transactions at other banks' ATMs located within bank premises, customers will be charged N100 per N20,000 withdrawal.
Off-site ATMs will also incur this base fee plus an additional surcharge of up to N500 per transaction. The surcharge must be disclosed at the point of withdrawal and serves as income for the ATM deployer or acquirer.
International ATM withdrawals will be charged based on rates set by international acquirers. The CBN cited rising operational costs and the need to enhance efficiency in ATM operations as reasons for these changes. The move is expected to accelerate ATM deployment across Nigeria while ensuring appropriate charges are applied by financial institutions.
This policy shift aligns with broader efforts to promote digital banking and reduce reliance on cash transactions—a strategy that has gained increased regulatory attention in recent years.
As banks prepare to implement these new charges starting March 1, customers may need to adjust their banking habits or explore alternative digital channels like mobile apps and online transfers to avoid additional fees.
