The Central Bank of Nigeria (CBN) has increased the fees for cash withdrawals for both “on-site” and “off-site” withdrawals, meaning that Nigerians will have to pay more.
The term “on-site” ATM withdrawals are done at a bank’s machine that is located outside of its branch location, whereas “off-site” ATM withdrawals are made at shopping malls, airports, or independent cash stations.
In a circular released Monday, Acting Director of the Financial Policy and Regulation Department John Onojah announced the updated fees, which will go into effect on March 1.
With the change, the regulator is making its most recent attempt to strike a compromise between the requirement for financial sector efficiency and growing operating costs.
“.”According to Section 10.7 of the current CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide), the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees in response to growing costs and the need to increase the effectiveness of ATM services in the banking sector.
“This review is anticipated to expedite the rollout of automated teller machines and guarantee that financial institutions impose reasonable fees on service users.” The following fees are therefore recommended to be applied by banks and other financial institutions starting on March 1, 2025,” the statement stated.
Withdrawals made at a bank-owned ATM outside of a branch location will now be subject to a fee of N100 for every N20,000 taken out under the revised system.
The total possible price for off-site ATM withdrawals, like those at shopping malls, airports, or standalone cash terminals, is N600. This fee is N100 plus a surcharge of up to N500 for every N20,000 withdrawal.
The ATMs of the account holder’s own bank do not charge fees for withdrawals.
Read Also: ₦480M Scandal Unfolds: Senators Allegedly Accept $1,000 ‘Appreciation’ Payments
Using a cost-recovery methodology, banks will charge clients the precise fees levied by the foreign acquirer for international ATM transactions.
Additionally, it stated that Section 10.6.2 of the Guide’s three free monthly withdrawals for Remote-On-Us (other bank customers/Not-On-Us clients) in Nigeria would no longer be applicable.
The action was taken in response to Nigerian banks’ growing operational costs, which include security and infrastructure upkeep.
In rural and semi-urban areas where digital payment acceptance is still limited, higher withdrawal costs may discourage ATM use and increase reliance on cash-based transactions.
