Commercial banks across Nigeria have begun charging customers new fees for ATM withdrawals following a directive from the Central Bank of Nigeria (CBN). Under the revised structure, customers will now pay N100 per N20,000 withdrawal at on-site ATMs and N600 for off-site ATM transactions.
The new charges, outlined in a circular issued by the CBN on February 10, 2025, officially take effect today, March 1. The directive aims to streamline ATM transaction costs and enhance service efficiency across the banking sector.
According to the CBN, withdrawals from a customer’s own bank ATM will remain free. However, customers using ATMs of other banks will now be charged N100 per withdrawal of N20,000 or less at on-site ATMs—machines located within or directly linked to a bank branch.
Off-site ATMs, which are situated outside bank premises in locations such as shopping malls, fuel stations, and public spaces, will incur an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be applied based on cost recovery, meaning customers will bear the exact fee levied by the international acquirer.
The CBN clarified that customers withdrawing amounts lower than N20,000 from another bank’s ATM will still be subject to the N100 charge per transaction.
The apex bank defended the revised charges, citing increasing operational costs and the necessity of improving ATM service efficiency within the banking industry.
The new fee structure has sparked reactions from customers and financial analysts, with some expressing concerns over the impact on cash transactions, particularly for individuals who rely heavily on ATMs for daily withdrawals.
As banks implement these new directives, Nigerians will need to adjust to the revised withdrawal costs while considering alternative digital banking options to mitigate frequent ATM charges.
