CBN has announced new ATM transaction fees, which will take effect on March 1.

Business/Economy

CBN has announced new ATM transaction fees, which will take effect on March 1.

Reported by Ilesanmi Ifeoluwa D

The Central Bank of Nigeria (CBN) has announced new transaction fees for Automated Teller machines (ATMs) that will take effect on March 1, 2025.

A circular issued by John Onojah, acting director of the Financial Policy and Regulation Department, stated that the revised charges are intended to address rising operational costs and improve banking service efficiency.

This review marks the first change in ATM transaction fees since 2019 when the CBN reduced the withdrawal fee from N65 to N35.

The updated fees are under Section 10.7 of the 'CBN Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions (2020).' according to the CBN.

The statement reads, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).”

"This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service,” the CBN added.

Under the new rules, customers withdrawing from their own bank’s ATMs (on-us transactions) will still enjoy free withdrawals.

According to the Nation, however, withdrawals from on-site ATMs (located at bank branches) will incur a fee of N100 for every N20,000 withdrawn.

For withdrawals at ATMs belonging to other banks (not-on-Us transactions), an N100 fee plus a surcharge of up to N450 per N20,000 withdrawal will apply.

The CBN emphasized that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.”

For international withdrawals using debit or credit cards, banks and financial institutions are now allowed to charge a “cost-recovery charge equivalent to the exact amount charged by the international acquirer.”

The CBN announced that the three free monthly withdrawals for remote-on-us transactions (other bank’s customers/not-on-us consumers) will no longer apply under Section 10.6.2 of the Guide.

The apex bank has urged all financial institutions to ensure compliance with the new guidelines before the March 1, 2025, implementation date.