- The Central Bank of Nigeria (CBN) has increased the fees for Automated Teller Machine (ATM) withdrawals starting March 1.
- John Onojah, Acting Director of CBN’s Financial Policy & Regulation Department, announced revised charges to reduce operational costs and improve banking service efficiency.
The Central Bank of Nigeria (CBN) has announced an increase in the fees associated with Automated Teller Machine (ATM) withdrawals, effective March 1.
In a circular issued by John Onojah, the Acting Director of the Financial Policy & Regulation Department, it was clarified that the updated charges are intended to mitigate rising operational costs and improve the overall efficiency of banking services.
According to the new regulations, customers making withdrawals from their own bank’s ATMs (on-us transactions) will still benefit from free withdrawals.
Conversely, withdrawals from on-site ATMs (those located at bank branches) will incur a fee of N100 for every N20,000 withdrawn.
For transactions at ATMs of other banks (not-on-us transactions), a fee of N100 plus a surcharge not exceeding N500 per N20,000 withdrawal will be applicable.
The CBN has stressed that the surcharge constitutes the revenue of the “ATM deployer/acquirer” and must be clearly communicated to consumers at the time of withdrawal.
This adjustment represents the first modification in ATM transaction fees since 2019, when the CBN reduced the withdrawal fee from N65 to N35.
The CBN stated that the revised fees align with Section 10.7 of the ‘CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).’
The statement noted, “In light of escalating costs and the necessity to enhance the efficiency of Automated Teller Machine (ATM) services within the banking sector, the Central Bank of Nigeria (CBN) has revised the ATM transaction fees as outlined in Section 10.7 of the current CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).”
Furthermore, the CBN indicated that this review aims to promote the deployment of ATMs and ensure that financial institutions apply appropriate charges to consumers utilizing the service.
For international withdrawals made with debit or credit cards, banks and financial institutions are now permitted to impose a “cost-recovery charge equivalent to the exact amount charged by the international acquirer.”
Furthermore, the Central Bank of Nigeria has announced that the provision for three complimentary monthly withdrawals for Remote-On-Us transactions (other bank’s customers/Not-On-Us consumers) will be discontinued as outlined in Section 10.6.2 of the Guide.
The central authority has called upon all financial institutions to adhere to the updated regulations prior to the implementation date of March 1.
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