Nigerians to pay more for ATM withdrawals with new CBN policy

In a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN stated that the revision was necessary to address rising operational costs and improve banking efficiency.

“The new structure aligns with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020),” the statement read.

Under the revised charges, withdrawals from a customer’s own bank’s ATM (on-us transactions) will remain free.

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However, a ₦100 fee will apply for every ₦20,000 withdrawal made at on-site ATMs within bank branches.

For withdrawals at ATMs of other banks (off-site or not-on-us transactions), customers will now be charged ₦100 plus a surcharge of up to ₦450 per ₦20,000 withdrawal.

The CBN also announced the removal of the previous benefit of three free monthly withdrawals for remote-on-us transactions, meaning customers will now pay for every transaction at other banks’ ATMs.

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For international ATM withdrawals, banks and financial institutions are now permitted to apply a “cost-recovery charge” equivalent to the exact fee imposed by the foreign financial institution.

The apex bank has directed all financial institutions to comply with the new fee structure before implementation.

It maintains that the revised charges are necessary to ensure the sustainability and efficiency of ATM services in Nigeria.