CBN Introduces N100, N500 Charges On ATM Withdrawals

Charges that customers have to pay when they make withdrawals at Automated Teller Machines (ATMs) have been increased by 185.7 per cent when they withdraw cash from other bank ATMs and 1,614 per cent for those withdrawing from other ATMs outside a banking premises.

According to the latest directive from the Central Bank of Nigeria (CBN) 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 2019, the CBN had issued a fresh Guide to Bank Charges reducing the withdrawal charges at not-on-us from N65 after the first three withdrawals in the month to N35. However, with the latest circular, there will be no free withdrawals at other bank ATMs.

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withdrawals, which is when customers make withdrawals at another bank will now attract a charge of N100 per N20,000 withdrawn from an ATM located within the bank.

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 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.

A Point of Sale (POS) operator who spoke with LEADERSHIP, said it is a welcome development as we expect more customers. “When it was N35 people were coming, now that it is N100 they will come to POS, as banks are not as many as POS that are scattered all across the country.  It is more expensive to use the banks because customers still have to take transport to the banks in most cases so they tend to come to us rather than go to banks.”