CBN APPROVES NEW ATM WITHDRAWAL CHARGES FOR BANKS

The Central Bank of Nigeria (CBN) has announced new ATM transaction fees, effective March 1, 2025. The revised charges aim to address rising operational costs and enhance efficiency within the banking sector.

NEW CHARGES FOR ATM TRANSACTIONS

The CBN has introduced the following new charges for ATM transactions:

• On-site ATM withdrawals: A ₦100 fee will be charged for every ₦20,000 withdrawal at ATMs located within the bank’s branches.
• Off-site or not-on-us ATM withdrawals: Customers will be charged a ₦100 fee plus a surcharge of up to ₦450 per ₦20,000 withdrawal.
• International withdrawals: Banks and financial institutions can now apply a “cost-recovery charge” equivalent to the exact amount charged by the international acquirer.
• Remote-on-us transactions: The previous benefit of three free monthly withdrawals will no longer apply.

RATIONALE BEHIND THE NEW CHARGES

The CBN explained that the revised fees are necessary to reflect the current economic realities and the rising cost of maintaining ATM services. The new charges are also expected to enhance the efficiency of the banking sector and promote electronic payment systems.

ALIGNMENT WITH CBN GUIDELINES

The CBN emphasized that the revised fees align with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). This guide provides a framework for banks and financial institutions to charge customers for various services, including ATM transactions.

IMPACT ON BANK CUSTOMERS

The new ATM charges are expected to have a significant impact on bank customers, particularly those who frequently use ATMs for withdrawals. Customers are advised to adjust their banking habits and explore alternative electronic payment channels to minimize the impact of the new charges.

The CBN’s approval of new ATM withdrawal charges for banks is a significant development in the Nigerian banking sector. While the new charges may seem steep, they are necessary to reflect the current economic realities and promote efficiency in the sector. Bank customers are advised to adapt to the new charges and explore alternative payment channels to minimize their impact.