Other banks’ ATM transaction to attract minimum N100 per N20,000 from 1 March – CBN

From 1 March 2025, customers will soon pay higher charges for withdrawals at the Automated Teller Machine (ATM) of commercial banks as the Central Bank of Nigeria (CBN) has reviewed transaction fees, citing rising operational costs and the need to enhance banking services.

While customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals, charges for other banks’ transaction will attract N100 per N20,000 at on-site ATMs (those located at bank branches).

Withdrawal fees were reduced from N65 to N35 in 2019.

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 N450 per N20,000 withdrawal.

However, the latest revision means customers will now pay more for cash withdrawals at ATMs, particularly for transactions involving other banks.

In a circular on Monday by CBN’s Acting Director of the Financial Policy and Regulation Department, Mr. John Onojah, the regulatory 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’.

Explaining the rationale behind the increase, CBN stated: ‘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)’.

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’.