On 10 February 2025, the Central Bank of Nigeria (CBN) issued a circular mandating banks and financial institutions to revise ATM withdrawal charges.

The CBN said the changes, set to take effect from Saturday, were part of its strategies to drive Nigeria towards a cashless economy.

Many Nigerian bank users woke up to an email titled Important Notice: Review of ATM Transaction Fees on Saturday. Others have seen a new pop-up notification with similar messages on their mobile banking apps.

WHAT THE CIRCULAR SAYS

ATM withdrawals are categorised based on ownership of the machine and its location.

The transactions at a customer’s own bank remain free, ensuring zero-cost access to funds when using in-network ATMs.

READ ALSO: CBN Orders N100, N500 Charges per N20,000 in Off-Network ATM Transactions

However, withdrawing cash from another bank’s ATM located within a bank branch attracts a charge of N100 per N20,000 withdrawn.

The fees increase further for off-site ATMs — machines deployed outside bank premises — where customers must pay a base charge of N100 plus an additional surcharge of up to N500 per N20,000 withdrawn.

This surcharge, which serves as income for the ATM deployer or acquirer, must be transparently displayed at the point of transaction.

For international ATM withdrawals, customers will be charged based on cost recovery, meaning they will pay exactly what the international acquirer imposes.

WHAT ARE THE IMPLICATIONS?

In practical terms, withdrawing from an ATM owned by the customer’s bank remains free. However, if a customer uses another bank’s ATM on bank premises, they will incur a fee of N100 per N20,000 withdrawn.

Off-site ATMs, typically found in malls, supermarkets and fuel stations, come with steeper costs. Here, customers pay N100 plus an extra N500 per N20,000 withdrawn. This means withdrawing N20,000 or more results in a charge of N600, making off-site transactions significantly pricier.

ATM Fee Comparison

Withdrawal amounts and fees comparison. (On-us withdrawals are free.)

Previously, off-network ATM fees were far lower.

“Off-network” refers to transactions at ATMs that do not belong to the customer’s bank, while “on-us” transactions occur at ATMs owned by the customer’s bank.

Before 2019, customers could make up to three off-network withdrawals per month without a charge. Beyond that, a fee of N65 was imposed, later reduced to N35.

READ ALSO: CBN To Refund $22m As $32m Goes Missing From Nigeria’s Water Sector

Under the revised structure, these exemptions no longer exist. All off-network withdrawals now attract fees directly tied to the amount withdrawn, increasing the cost burden on customers who rely on third-party ATMs.

With these changes, higher withdrawal amounts will now lead to proportionally higher charges, making off-site ATM transactions attract more fees.