Nigerians will pay higher charges on cash withdrawals as the Central Bank of Nigeria (CBN) has introduced new ATM charges for both “on-site” and “off-site” withdrawals.
On-site ATM withdrawals refer to those made at a machine owned by a bank but outside its branch premises while off-site ATM withdrawals are those at shopping centres, airports or standalone cash points.
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The revised fees, announced in a circular on Monday by Acting Director of the Financial Policy and Regulation Department, John Onojah, will take effect from 1 March.
The adjustment marks the regulator’s latest effort to balance rising operational costs with the need for financial sector efficiency.
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“In response to rising costs and the need to improve 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,” it said.
Under the updated framework, on-site ATM withdrawals—those made at a machine owned by a bank but outside its branch premises—will now attract a charge of N100 per N20,000 withdrawn.
Off-site ATM withdrawals, such as those at shopping centres, airports or standalone cash points, will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal, bringing the total possible charge to N600.
Withdrawals from an account holder’s own bank’s ATMs remain free.
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For international ATM transactions, banks will apply a cost-recovery model, passing on the exact charges imposed by the foreign acquirer to customers.
It also said 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 will no longer apply.
The move comes as Nigerian banks contend with mounting operational expenses, including infrastructure maintenance and security.
Higher withdrawal costs could disincentivise ATM usage and increase reliance on cash-based transactions, particularly in rural and semi-urban areas where digital payment adoption remains low.
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