The Central Bank of Nigeria (CBN) has announced a significant revision to its Automated Teller Machine (ATM) transaction fees, effectively scrapping the previous allowance of three free withdrawals per month for customers using ATMs of other banks.
This directive, which takes effect from March 1, 2025, is expected to increase withdrawal costs for bank customers, particularly those who rely on ATMs outside their banks’ networks.
The new fees, outlined in a circular obn Tuesday, signed by Mr. John Onojah, Acting Director of the Financial Policy and Regulation Department, will see customers paying N100 per N20,000 withdrawal on on-site ATMs (within bank premises) and N100 per N20,000 withdrawal plus an additional surcharge of up to N500 on off-site ATMs (outside bank premises).
International withdrawals will be charged based on the exact amount imposed by the international acquirer.
The apex bank has justified the review, citing rising costs and the need to enhance ATM efficiency.
However, this move is seen as a blow to Nigerians who are already struggling to make ends meet amidst economic hardship.
The introduction of additional surcharges on off-site ATMs is also expected to push customers towards using their own bank’s ATMs more frequently or exploring alternative digital banking options such as mobile and internet banking.
As the March 1, 2025 implementation date approaches, financial institutions are expected to update their systems and notify customers about the new charges.
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