CBN Introduces New ATM Transaction Fees, Scraps Free Monthly Withdrawals

Abuja, Nigeria – The Central Bank of Nigeria (CBN) has announced a revised structure for Automated Teller Machine (ATM) transaction fees, set to take effect on March 1, 2025.

The changes, outlined in a circular titled “Review of Automated Teller Machine Transaction Fees”, aim to enhance efficiency and increase ATM deployment across the country.

Under the new rules, withdrawals from a customer’s own bank’s ATM (“On-Us” transactions) will remain free.

However, on-site ATM withdrawals will now attract a N100 fee per N20,000 withdrawn.

For “Not-On-Us” transactions, where customers withdraw from another bank’s ATM, an off-site withdrawal will be charged N100 plus a surcharge of up to N500 per N20,000.

The CBN clarified that this surcharge belongs to the ATM deployer/acquirer and will be disclosed at the point of withdrawal.

Additionally, the CBN has scrapped the three free monthly withdrawals previously allowed from other banks’ ATMs.

The directive aligns with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).

For international transactions, withdrawal fees will follow a cost recovery model, meaning customers will bear the exact charge imposed by the international acquirer.

John S. Onojah, Acting Director of the Financial Policy and Regulation Department, stated that the revised fees will ensure fair pricing, improved ATM service delivery, and encourage more investments in the sector.

All banks and financial institutions have been mandated to implement the changes by March 1, 2025.