CBN raises ATM withdrawal charges to N500, ends free transactions
BY TEMITOPE ADEBAYO
Effective March 1, 2025, bank customers will no longer enjoy the three free withdrawals every month on cash collected on the Automated Teller Machine (ATM) of another bank, as charges on withdrawal increased to as much as N500 on every N20,000 withdrawal.
In a circular to all banks and other financial institutions signed by the director Financial Policy and Regulation department, John Onoja, the CBN said, the increase in charges became necessary due to rising costs and the need to improve efficiency in the industry.
Consequently, not-on-us withdrawals which is when customers make withdrawals at another bank will now attract a charge of N100 per N20,000 withdrawn from an ATM located within the bank.
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For off-site ATMs, not located within the banking premises, bank customers will be charged N100 and an additional N500 surcharge for every N20,000 withdrawal, if the ATM is not the issuer of the card used. This brings the off-site not-on-us charge to N600 per N20,000 withdrawal.
The circular titled ‘Review of Automated Teller Machine Transaction Fees’ stated that, the ATM transaction fees had been reviewed in response to rising costs and the need to improve efficiency of ATM services in the banking industry.
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025,” it pointed out.
It stated that, On-Us, which is when a customer is withdrawing at the ATM of the customer’s financial institution in Nigeria, there shall be no charge. Also, International Withdrawals, whether debit/credit card the per transaction charge shall be the exact charge by the international acquirer.
“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.” It stated.
