1 week ago
38
The Central Bank of Nigeria (CBN) has announced a significant overhaul of Automated Teller Machine (ATM) transaction fees, eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
This new directive, outlined in a circular dated February 10, 2025, will take effect from March 1, 2025, and applies to all banks and financial institutions operating in Nigeria.
The circular, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, was published on the apex bank’s website on Tuesday.
According to the CBN, the review aims to address rising operational costs and enhance ATM efficiency across the banking sector.
The CBN’s circular details several major changes under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020): On-Us Transactions (Same Bank’s ATM): Customers withdrawing from their own bank’s ATMs will continue to enjoy free withdrawals.
The most notable change is the complete removal of the previous policy allowing bank customers three free monthly withdrawals from ATMs belonging to other banks. This means that every withdrawal on another bank’s ATM will now attract a charge.
The circular noted, “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.”
The CBN cited increasing operational costs and the need to improve ATM efficiency as the primary reasons for this policy review.
The regulator expects the adjustments to encourage greater deployment of ATMs across Nigeria while ensuring that financial institutions appropriately charge customers for the service.
“In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“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,” the circular stated.
This decision aligns with the CBN’s broader strategy to promote digital banking and reduce reliance on cash transactions, a key component of its ongoing financial sector reforms.
The announcement has triggered widespread debate, with many bank customers voicing concerns over the increased costs of withdrawals, particularly for those who frequently rely on other banks’ ATMs.
Speaking on the implications, financial analyst Dr. Tunde Adebayo highlighted the potential impact on unbanked and underbanked Nigerians.
“Many rural and low-income customers still rely on ATMs due to limited digital literacy. Additional withdrawal charges may discourage them from using banking services altogether.”
On the other hand, banking expert Mrs. Folake Olatunji believes the decision could enhance ATM availability. “If banks reinvest these fees into deploying more ATMs nationwide, it could reduce congestion and improve accessibility in underserved areas.oil.
English (US) ·