New ATM Transaction Fees: What You Need to Know

As of March 1, 2025, the Nigerian banking sector will witness a significant change in the way Automated Teller Machine (ATM) transactions are charged. The new fees, announced by the Central Bank of Nigeria (CBN), aim to address rising operational costs and enhance efficiency in the banking sector.

How Will the New Fees Work?

The new fees will apply to both on-site and off-site ATM transactions. Here’s a breakdown of what you can expect:

• On-Us Transactions: Withdrawals from your bank’s own ATM will remain free of charge. This means that if you’re a customer of a particular bank, you won’t be charged for withdrawing cash from that bank’s ATM.
• Not-On-Us Transactions: For withdrawals from another bank’s ATM, you’ll be charged N100 per N20,000 withdrawal. This applies to both on-site and off-site ATMs.
• Off-Site ATMs: In addition to the N100 charge, you’ll also pay a surcharge of up to N500 per N20,000 withdrawal from an off-site ATM.
• International Withdrawals: For international withdrawals, the charges will be based on cost recovery. This means that you’ll pay the exact fee applied by the international acquirer.

What Does This Mean for Consumers?

The introduction of the new fees will have a significant impact on consumers. One of the most notable changes is that the three free monthly withdrawals for Remote-On-Us customers will no longer apply. This means that customers will have to pay for every withdrawal, regardless of the amount.

Why the Change?

The CBN made this change to address rising operational costs and enhance efficiency in the banking sector. The new fees are designed to ensure that banks can recover their costs and maintain the integrity of the ATM network.

Conclusion

The introduction of the new ATM transaction fees is a significant change in the Nigerian banking sector. While it may seem like an additional burden on consumers, the fees are designed to ensure that banks can maintain the ATM network and provide quality services to their customers. As always, it’s essential to be aware of the changes and plan accordingly to minimize the impact on your finances.