The Central Bank of Nigeria (CBN) has introduced a comprehensive review of ATM transaction fees that will take effect on March 1, 2025. This move comes as part of the regulator’s efforts to address rising operational costs in the banking industry and to enhance the efficiency of ATM services across the country.
Background and Rationale
In a circular signed by John Onojah, acting Director of the Financial Policy and Regulation Department, the CBN confirmed that the fee revision is in line with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020). This update reflects the regulator’s response to increased costs while simultaneously encouraging the rapid deployment of ATMs. Notably, the last review of ATM transaction charges was in 2019, when fees were reduced from N65 to N35.
New Fee Structure Details
- On-Us Transactions: Customers withdrawing cash from their own bank’s ATMs will continue to enjoy free transactions.
- On-Site ATM Withdrawals: Withdrawals made at ATMs located within bank branches (on-site ATMs) will incur a fee of N100 per N20,000 withdrawn.
- Off-Site ATM Withdrawals: For transactions at ATMs operated by banks other than the customer’s own (not-on-us transactions), a fee of N100 per N20,000 withdrawn will be charged, in addition to a surcharge of up to N450 per N20,000 withdrawn.
- The surcharge represents income for the ATM deployer/acquirer and must be clearly disclosed to consumers at the point of withdrawal.
- International Withdrawals: For international withdrawals made using debit or credit cards, banks and financial institutions are now permitted to apply a cost-recovery charge. This charge must be exactly equivalent to the amount levied by the international acquirer.
- Remote-On-Us Withdrawals: The previous arrangement allowing three free monthly Remote-On-Us withdrawals (for customers of other banks) under Section 10.6.2 of the Guide will no longer be available.
Implementation and Compliance
Banks and other financial institutions are required to adopt and implement these new charges from March 1, 2025. The CBN has urged all relevant institutions to ensure full compliance with the updated guidelines ahead of the implementation date, thereby promoting transparency and efficiency in fee disclosures.
This revision in ATM transaction fees is designed to meet the challenges of rising operational expenses while encouraging the expansion and efficient deployment of ATM services in Nigeria. By aligning with the directives set out in the 2020 CBN Guide to Charges, the central bank aims to create a more sustainable and consumer-aware banking environment.