NIGERIANS will be paying higher charges starting from March 2023, for withdrawals at commercial banks’ Automated Teller Machine (ATM), the Central Bank of Nigeria (CBN) has announced.
In a circular signed, by John Onojah, the acting director of the Financial Policy and Regulation Department, on Tuesday, February 11, the apex bank confirmed that the new charges will take effect from March 1, 2025.
The increased charges, the apex bank said, were a result of a transaction fees review it conducted, wherein it observed rising operational costs and the need to enhance banking services.
This marks the first adjustment since 2019 when withdrawal fees were reduced from N65 to N35.
The regulator explained that the latest revision means customers will now pay more for cash withdrawals at ATMs, particularly for transactions involving other banks.
The apex bank emphasised that the surcharge for withdrawals at ATMs of different banks “is the income of the ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.”
According to the new policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.
However, a N100 fee per N20,000 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 an N100 fee plus a surcharge of up to N450 per N20,000 withdrawal.
Citing further reasons that spurred the increase, CBN stated: “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).”
According to the CBN, this review aims to “accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
Banks and other financial institutions have been directed to comply with the new directive ahead of its implementation on March 1.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025,” they further stated.
The ICIR has reported the rising cost of transactions witnessed specifically during the last yuletide celebrations among Point of sales operators, retail stores, and filling station outlets who were arbitrarily adding transaction costs to customers.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.