NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has announced a review of transaction fees for automated teller machines (ATMs) across the country.
In a circular signed by the Acting Director of the Financial Policy and Regulation Department, John Onojah, on Tuesday, the CBN stated that the revised charges will take effect from March 1.
According to the apex bank, the review aims to address rising operational costs and enhance efficiency within the banking sector.
ALSO: House Of Reps Seeks Immediate Suspension Of Telecom Tariff Hike
The last time ATM transaction charges were reviewed was in 2019, when the CBN reduced the withdrawal fees from ₦65 to ₦35.
While the latest increase means Nigerians will pay more for more ATM transactions, the apex bank said the review is in line with Section 10.7 of the ‘CBN guide to charges by banks, other financial and non-bank financial institutions (2020)’.
CBN said, “In response to rising costs and the need to improve 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.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
According to the new policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.
However, an ₦100 fee per ₦20,000 withdrawal will be applied at on-site ATMs (those located at bank branches).
For withdrawals at ATMs of other banks (Not-on-Us transactions), an off-site withdrawal will attract a N100 fee plus a surcharge of up to ₦450 per ₦20,000 withdrawal.
The CBN clarified 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, the CBN said banks and financial institutions are now permitted to apply “a cost-recovery charge equivalent to the exact amount charged by the international acquirer.”
“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” CBN added.
The apex bank urged all financial institutions to comply with the new directives ahead of the implementation date.