CBN Announces New ATM Withdrawal Fees
…Citing Rising Operational Costs
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has announced a revision of fees associated with Automated Teller Machine (ATM) withdrawals, effective March 1st.
This marks the first change in ATM charges since 2019 when the CBN reduced the withdrawal fee from N65 to N35.
The CBN, in a circular issued by John Onojah, Acting Director of the Financial Policy and Regulation Department, explained that the updated charges are necessary to address increasing operational costs faced by banks and to enhance the overall efficiency of ATM services.
While customers will continue to enjoy free withdrawals from their own bank’s ATMs (on-us transactions), other transactions will now incur fees. Withdrawals from on-site ATMs (ATMs located within bank branches) will be charged N100 per N20,000 withdrawn.
For withdrawals from ATMs belonging to other banks (not-on-us transactions), a fee of N100 plus a surcharge not exceeding N500 per N20,000 withdrawn will apply. The CBN clarified that the surcharge is the income of the “ATM deployer/acquirer” and must be clearly disclosed to consumers at the point of withdrawal.
The CBN justified the fee increase by citing rising operational costs within the banking sector.
The circular stated, “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 Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).”
The CBN added that 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.”
The updated fees are in line with Section 10.7 of the ‘CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020),’ the CBN confirmed. The apex bank also announced changes to fees for international withdrawals, stating that banks and financial institutions are now authorized to charge a “cost-recovery charge equivalent to the exact amount charged by the international acquirer” for international ATM transactions using debit or credit cards.
Furthermore, the CBN has discontinued the three free monthly withdrawals for Remote-On-Us (other bank’s customers/Not-On-Us consumers) previously offered under Section 10.6.2 of the Guide. This means that all withdrawals from other banks’ ATMs will now be subject to the new fee structure.
The CBN has directed all financial institutions to ensure full compliance with these new guidelines before the implementation date of March 1st. This directive underscores the CBN’s commitment to ensuring a smooth transition to the new fee structure and maintaining transparency in ATM transactions.
The changes are expected to have a significant impact on how Nigerians access and use ATM services, and consumers are advised to familiarize themselves with the updated fee structure to avoid unexpected charges.
