Nigeria: CBN Revises ATM Transaction Fees, Sets Implementation Date

The Central Bank of Nigeria (CBN) has announced a revision of transaction fees for Automated Teller Machines (ATMs), with the new charges set to take effect from March 1, 2025.

In a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN stated that the adjustment aims to address rising operational costs and enhance banking sector efficiency.

The last review of ATM withdrawal charges occurred in 2019 when the CBN reduced the fee from N65 to N35. With the latest changes, customers will pay more for ATM transactions. However, the apex bank emphasized that the revision aligns with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).

“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 circular stated.

The CBN highlighted that the review is expected to accelerate ATM deployment and ensure financial institutions apply appropriate charges to consumers.

Breakdown of the New ATM Charges

Under the revised structure:

• On-Us Transactions: Customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals.
• On-Site ATM Transactions: A N100 fee per N20,000 withdrawal will apply to transactions conducted at ATMs located within bank branches.
• Not-On-Us Transactions (Other Bank ATMs): Withdrawals from ATMs of other banks will attract a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal. The CBN clarified that this surcharge is the income of the ATM deployer/acquirer and must be disclosed to customers at the point of withdrawal.
• International Transactions: For withdrawals using debit or credit cards abroad, banks and financial institutions are permitted to apply a “cost-recovery charge equivalent to the exact amount charged by the international acquirer.”
• Remote-On-Us Transactions: The previous allowance of three free monthly withdrawals at other banks’ ATMs (as stated in Section 10.6.2 of the CBN Guide) has been discontinued.

The CBN has directed all financial institutions to comply with the revised fees in preparation for the implementation date.