The Central Bank of Nigeria (CBN), on Tuesday, February 11, 2025, announced a review of transaction fees for automated teller machines (ATMs).
However, the decision has sparked concerns that Point of Sale (PoS) operators may take advantage of the new charges to increase their service fees.
According to a circular signed by John Onojah, acting Director of the Financial Policy and Regulation Department, the revised charges will take effect from March 1, 2025.
The review updates the ATM transaction fees outlined in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).
Under the new policy, customers withdrawing cash from their own bank’s ATM will continue to enjoy free withdrawals.
However, those using on-site ATMs located at bank branches for withdrawals from other banks will now pay a charge of N100, plus an additional surcharge of up to N500 per N20,000 withdrawal.
The CBN clarified that this surcharge, which serves as income for the ATM deployer/acquirer, must be disclosed to consumers at the point of withdrawal.
For international ATM withdrawals using debit or credit cards, financial institutions will now apply a cost-recovery charge equal to the exact amount charged by the international acquirer.
The CBN stated that the revised charges aim to accelerate ATM deployment and ensure financial institutions apply fair charges to consumers.
However, analysts warn that the policy could have unintended consequences.
Speaking with Daily Independent, Dr. Wale Imole, convener of the National Problems and Solutions Initiative, cautioned that PoS operators may seize the opportunity to hike their service charges.
“Hearing that the CBN has approved this review is a call to duty for PoS operators to increase their charges. Nigerians were already struggling with the high, inconsistent fees imposed by these agents,” he said.
Imole urged the CBN to regulate PoS charges and prevent operators from exploiting Nigerians under the guise of the revised ATM fees.
Another respondent, Mrs. Chikodi Ugochukwu, a trader, expressed mixed feelings about the policy. She noted that while higher ATM fees are a concern, the changes should ideally lead to improved banking services.
“If this review brings more efficiency to ATM transactions, I will welcome it. But I hope it also puts an end to failed transactions and unnecessary deductions,” she said.
