CBN Imposes N100 Minimum Charges On ATM Transactions Effective March 1

The Central Bank of Nigeria (CBN) has announced a revision of Automated Teller Machine (ATM) transaction fees for banks and financial institutions, with the new charges set to take effect from March 1, 2025.

In a statement signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN explained that the changes are designed to improve ATM efficiency and encourage wider deployment across the country.

The circular, titled “Review of Automated Teller Machine Transaction Fees,” states that the adjustments align with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).

Breakdown of the New Charges

• “On-Us” Withdrawals (Same Bank ATMs): Customers will continue to enjoy free withdrawals when using ATMs operated by their own bank.
• On-Site ATM Withdrawals: A charge of N100 per N20,000 withdrawal will now apply.
• “Not-On-Us” Withdrawals (Other Banks’ ATMs): Off-site withdrawals will attract a N100 fee plus an additional surcharge of up to N500 per N20,000 withdrawal. The surcharge, which serves as revenue for the ATM provider, will be clearly displayed at the point of transaction.
• International ATM Withdrawals: Charges will follow a cost-recovery model, meaning the fee imposed by the international service provider will apply directly.

Previously, customers were allowed three free monthly withdrawals from other banks’ ATMs.

However, this policy has now been scrapped, meaning all interbank withdrawals will now attract fees.

The CBN has directed all banks and financial institutions to implement these new charges by the deadline.

According to the apex bank, the revised structure is intended to promote fairness in ATM service pricing while encouraging further investment in Nigeria’s financial sector.

KanyiDaily recalls that CBN recently announced a new daily cash withdrawal limit of N100,000 per customer for transactions through Point-of-Sale (POS) agents.