By Busari Kabirat
The Automated Teller Machine (ATM) transaction service fees has been reviewed by the Central Bank of Nigeria (CBN), with new charges set to take effect from March 1, 2025.
This was made known by John Onojah the acting director of the Financial Policy and Regulation Department, in a signed circular which stated that the CBN fee adjustment aims at address the rising operational costs and enhance efficiency within the banking sector.
The ATM transaction fees was last reviewed in 2019 as CBN deducted ₦30 from the withdrawal fee of ₦65 to ₦35, which means that the new policy review will be higher for certain ATM transactions.
The new CBN policy is said to align with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
Customers will under the new structure be making withdrawals from their own bank’s ATMs on a free withdrawal but a ₦100 fee will be charged for every ₦20,000 withdrawal at on-site ATMs, which are located within the bank’s branches.
While withdrawals on other bank’s ATMs will be charged a ₦100 fee plus a surcharge of up to ₦450 per ₦20,000 withdrawal.
International withdrawals using debit or credit cards, the CBN now allows banks and financial institutions to apply a “cost-recovery charge” equivalent to the exact amount charged by the international acquirer.
However, the previous benefit of three free monthly withdrawals for remote-on-us transactions (customers of other banks) will no longer apply.
The CBN has urged all financial institutions to comply with the new directives ahead of the implementation date, emphasizing that the revised fees aim to improve the efficiency of ATM services and ensure that appropriate charges are applied to consumers.
