The Central Bank of Nigeria (CBN) has introduced a new ATM transaction fee structure, scrapping free withdrawals and increasing charges for customers using ATMs outside their banks. The updated fees, aimed at covering rising operational costs and improving service efficiency, will take effect from March 1, 2025.
In a circular issued on February 10, the CBN stated that the changes would “accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
For international withdrawals using debit or credit cards, the fee will be determined by the international acquirer’s charges. Additionally, the CBN has removed the previous policy that allowed three free withdrawals per month from other banks’ ATMs. Now, every transaction outside a customer’s bank will attract charges.
The CBN has long pushed for a cashless economy, promoting electronic payments as an alternative to cash. While digital transactions have grown, cash remains widely used, especially with the rise of POS agents. However, the increasing cost of withdrawing money through ATMs and POS terminals may encourage more people to adopt digital banking solutions.
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