The Central Bank of Nigeria (CBN) has announced new charges for Automated Teller Machine (ATM) withdrawals, which will take effect from March 1, 2025. The new fee structure is part of the apex bank’s broader financial policy aimed at streamlining banking operations and encouraging electronic transactions across the country.
Under the revised policy, customers using ATMs will be subject to varying charges depending on the location and ownership of the machine. The breakdown of the charges is as follows:
- On-Site ATMs (ATMs located within bank premises): Customers will incur a charge of N100 per N20,000 withdrawal.
- Off-Site ATMs (ATMs located outside bank premises, such as malls, supermarkets, or fuel stations): A standard fee of N100 per N20,000 withdrawal will apply, along with an additional surcharge of up to N500 per transaction.
- On-Us Transactions (withdrawals made from an ATM operated by the customer’s own bank): These transactions will remain free of charge, ensuring that customers are not penalized for using their own financial institution’s ATM services.
The new charges mark a significant shift in Nigeria’s banking landscape, as the CBN continues to refine its policies to balance financial accessibility with operational efficiency. The policy is expected to impact millions of bank customers nationwide, particularly those who frequently withdraw cash from off-site ATMs.
While the CBN has yet to provide further clarification on the rationale behind the changes, analysts suggest the move could be aimed at reducing the cost burden on banks while promoting cashless transactions through digital banking platforms such as mobile banking apps, USSD transfers, and Point-of-Sale (POS) systems.
Financial experts also warn that the introduction of additional ATM fees, particularly on off-site transactions, could lead to increased reliance on alternative payment methods, potentially affecting cash-based businesses.
The CBN has urged financial institutions to ensure a smooth transition to the new fee structure and to communicate the changes effectively to their customers. The policy is expected to generate mixed reactions, with some customers likely to embrace digital banking alternatives while others may express concerns over rising transaction costs.
As the March 1, 2025, implementation date approaches, stakeholders in the financial sector will be closely monitoring the impact of the new ATM charges on consumer banking behavior and the broader economy.
