The Central Bank of Nigeria (CBN) has announced a major review of ATM transaction fees, with new charges set to take effect from March 1, 2025. This policy change is expected to increase the cost of withdrawing cash, sparking concerns among bank customers.
In a circular signed by John Onojah, acting director of the Financial Policy and Regulation Department, the CBN stated that the new charges are necessary to address rising operational costs in the banking sector. The last review was in 2019 when the CBN reduced withdrawal fees from ₦65 to ₦35, but this latest adjustment marks a sharp increase. …CONTINUE READING
Under the new structure, withdrawals from a customer’s own bank (on-us transactions) remain free. However, a ₦100 fee will now apply for every ₦20,000 withdrawn from ATMs located within bank branches. For transactions at ATMs of other banks (off-site withdrawals), customers will face a ₦100 fee plus a surcharge of up to ₦450 per ₦20,000.
International ATM withdrawals will also attract higher charges, as banks are now allowed to apply a “cost-recovery charge” based on the actual fees imposed by international acquirers. Additionally, the previous benefit of three free monthly withdrawals for customers using ATMs of other banks has been scrapped.
The CBN has instructed all financial institutions to comply with these new directives, emphasizing that the changes aim to improve efficiency. However, many Nigerians fear this move will further strain their finances amid economic hardship.
