The Central Bank of Nigeria (CBN) has revised Automated Teller Machine (ATM) transaction fees and scrapped the previous allowance of three free withdrawals per month for customers using ATMs of other banks.
The apex bank’s latest e-transaction directive as contained in a circular issued on Tuesday and signed by the Acting Director of the Financial Policy and Regulation Department, Mr. John Onojah, reflected that customers will be paying N100 per N20,000 withdrawal on on-site ATMs (within bank premises) and N100 per N20,000 withdrawal plus an additional surcharge of up to N500 on off-site ATMs (outside bank premises).
According to the circular, the revised ATM charges will take effect from March 1, 2025.
A further analysis of the latest monetary policy directive showed that international ATM withdrawals would be charged based on the exact amount imposed by the international acquirer.
The CBN justified the latest measure on what it termed rising costs and the need to enhance ATM efficiency.
The directive requires that preparatory to the March 1, 2025 implementation date, deposit money banks (DMBs) and other financial institutions (OFIs) to update their systems and notify customers about the new charges.
Analysts believe that the introduction of additional surcharges on off-site ATMs by the apex bank will invariably compel bank customers to be using their own bank’s ATMs more frequently or exploring alternative digital banking options such as mobile and internet banking.
