Nigerians will soon face higher costs for accessing cash at Automated Teller Machines (ATMs) as the Central Bank of Nigeria (CBN) has announced new withdrawal fees, eliminating free interbank transactions and introducing additional charges for withdrawals at bank-branch ATMs.
In a circular released by the acting Director of Financial Policy and Regulation, John Onojah, the apex bank stated that this review of ATM transaction fees aims to address rising operational costs and enhance efficiency in the banking sector.
Under the new policy, withdrawals from ATMs belonging to a customer’s own bank will remain free of charge.
However, customers withdrawing cash from ATMs at bank branches will incur a fee of ₦100 for every ₦20,000 withdrawn.
For transactions at ATMs operated by other banks, customers will now face a ₦100 charge per ₦20,000 withdrawal, plus an additional surcharge that can reach up to ₦450.
The CBN clarified that this surcharge shall be considered income for the ATM operator and must be transparently communicated to customers at the time of withdrawal.
International transactions using debit or credit cards will also incur a cost-recovery charge, which will equate to the exact fee levied by the international acquirer.
Furthermore, the CBN has eliminated the three free monthly withdrawals previously granted to customers using other banks’ ATMs, meaning all interbank ATM transactions will now incur charges.
This new policy is set to take effect on March 1, 2025, with financial institutions required to ensure full compliance prior to the implementation date.
While the CBN claims that these changes will improve ATM accessibility and enhance banking services, many Nigerians are likely to feel the burden of increased charges, especially during a time of economic difficulty.
