The Central Bank of Nigeria (CBN) has introduced new ATM charges. The apex bank disclosed this in a circular signed by its Acting Director on Financial Policy and Regulation, John Onojah. According to Onojah, the review in ATM charges is in response to rising costs of operation for banks and the need to improve the efficiency of automated teller machines (ATMs).
“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 Sectio 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,” the CBN said.
Clik here to view.
The new ATM charges are as follows:
Customers who are withdrawing at the ATMs of their own banks and financial institutions in Nigeria will not be required to pay any ATM charges. However, when withdrawing from another bank or financial institution’s ATM in Nigeria, if the withdrawal takes place on-site (within the bank’s premises) such a withdrawal would attract a charge of 100 naira for every 20,000 naira withdrawal.
If the ATM is not located on the bank’s premises, if they are offsite ATMs located outside a bank premises like at shopping malls, airports, grocery stores or gas stations, providing access to banking services away from the traditional bank premises, such a withdrawal attracts the basic charge of 100 naira for 20,000 naira as well as a surcharge of not more than 500 naira per 20,000 naira withdrawal.
The CBN explained that the surcharge is an income of the ATM deployer or acquirer and must be disclosed to the user at the point of withdrawal.
For international withdrawals using either a debit or credit card, they have to pay cost recovery which will be charged by the international acquirer.
CBN ends 3 free monthly withdrawals on ATM charges
The CBN also announced the discontinuation of the three free withdrawals per month on ATM cards. Before now, it used to be that every ATM user had three free withdrawals per month before they started getting charged on the fourth. However, after this review, the three free monthly withdrawals allowed for Remote-On-Us (bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply per the CBN.
Clik here to view.
The apex bank also expressed its belief that the review would ensure rapid deployment of ATMs nationwide.
“The 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,” the bank said.
See also: Investigation: Are bank staff colluding with PoS operators to rip off Nigerians?
