Central Bank of Nigeria (CBN) has reviewed the transaction fees for automated teller machines (ATMs).
Gatekeepers News reports that CBN announced this in a circular signed by John Onojah, acting director of financial policy and regulation department.
The apex bank noted that the revised charges will take effect from March 1.
It added that the move would address rising operational costs and enhance efficiency in the banking sector.
CBN 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).
The circular reads, “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.
An N100 fee per N20,000 withdrawal
will, however, 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 an N100 fee plus a surcharge of up to N450 per N20,000 withdrawal.
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.”
It added, “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 o longer apply.”
CBN urged all financial institutions to comply with the new directives ahead of the time implementation date.
