By Balogun Tumininu
The Central Bank of Nigeria (CBN) has unveiled a new fee structure for Automated Teller Machine (ATM) transactions, set to take effect on March 1, 2025. The revised charges aim to streamline banking operations and address the rising costs associated with ATM services across the country.
Under the new policy, customers will face varying fees depending on the type of ATM used for withdrawals. For on-site ATMs, a flat fee of ₦100 will be applied for every ₦20,000 withdrawn.
However, off-site ATM transactions will incur a base charge of ₦100, plus an additional surcharge of up to ₦500 per ₦20,000 withdrawal. The surcharge is intended to cover the operational costs incurred by banks for providing services outside their network.
In a move to encourage customers to use their own banks’ ATMs, the CBN has maintained a zero-charge policy for “On-Us” transactions. This means customers withdrawing cash from ATMs operated by their own financial institutions will not be subject to any fees.
The CBN, in a statement released earlier today, emphasized that the new fee structure is designed to promote efficiency in the banking sector while ensuring that customers are not unduly burdened. “The revised charges reflect the need to balance operational costs with the convenience of ATM services for Nigerians,” the statement read.
The announcement has sparked mixed reactions from the public. While some customers have expressed concerns over the additional costs, especially for off-site ATM transactions, others have welcomed the exemption for “On-Us” withdrawals. Financial analysts have also weighed in, noting that the policy could encourage customers to patronize their own banks’ ATMs, thereby reducing congestion at off-site machines.
Banks across the country are expected to update their systems and notify customers of the changes ahead of the March 1 implementation date. The CBN has urged financial institutions to ensure transparency in communicating the new fees to avoid confusion.
As the deadline approaches, Nigerians are advised to familiarize themselves with the new fee structure to make informed decisions about their ATM usage. The CBN has also assured the public that it will continue to monitor the impact of the policy and make adjustments if necessary to safeguard the interests of consumers and the banking sector.