CBN Introduces New ATM Transaction Fees: What You Need to Know Starting March 1, 2025

The Central Bank of Nigeria (CBN) has announced a revision of Automated Teller Machine (ATM) transaction fees, effective from March 1, 2025. This move aims to address rising operational costs and enhance the efficiency of banking services across the country.

Key Changes in ATM Transaction Fees:

1. Withdrawals from Own Bank’s ATMs (On-Us Transactions):
   • Customers will continue to enjoy free withdrawals when using ATMs operated by their own banks.
2. Withdrawals from Other Banks’ ATMs (Not-On-Us Transactions):
   • On-Site ATMs (Located at Bank Branches): A fee of ₦100 will be charged for every ₦20,000 withdrawn.
   • Off-Site ATMs (Located Outside Bank Premises): A fee of ₦100 plus a surcharge of up to ₦450 will be applied per ₦20,000 withdrawal. The surcharge is intended as income for the ATM deployer and must be disclosed to consumers at the point of withdrawal.
3. International Withdrawals:
   • For transactions using debit or credit cards abroad, banks and financial institutions are now permitted to apply a “cost-recovery charge” equivalent to the exact amount charged by the international acquirer.
4. Removal of Free Monthly Withdrawals:
   • The previous allowance of three free monthly withdrawals for customers using other banks’ ATMs has been discontinued. This means that all withdrawals from ATMs not operated by the customer’s bank will now incur the specified fees.

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Implications for Bank Customers:

• Increased Costs: Customers who frequently use ATMs of other banks should be prepared for additional charges.
• Strategic Withdrawals: To minimize fees, it’s advisable to plan withdrawals and use your own bank’s ATMs whenever possible.
• Consider Digital Banking: Exploring digital banking options such as mobile banking apps and online transfers can help reduce reliance on cash withdrawals and associated fees.

The CBN has directed all financial institutions to ensure compliance with the new fee structure by the March 1 implementation date. This adjustment reflects the CBN’s commitment to maintaining a sustainable and efficient banking system in Nigeria.

For more detailed information, you can refer to the official announcement by the CBN.