Nigerian commercial banks have begun enforcing a new ATM withdrawal fee structure, charging customers N100 per N20,000 withdrawal at on-site ATMs and N600 per N20,000 withdrawal at off-site ATMs. This follows a directive from the Central Bank of Nigeria (CBN) aimed at reviewing ATM transaction fees.
Breakdown of the New ATM Charges
The CBN issued a circular on February 10, 2025, outlining the updated fees, which officially took effect on March 1, 2025. Under this revised structure:
• Withdrawals from a customer’s own bank ATMs remain free.
• Using an on-site ATM (within or directly affiliated with a bank branch) now incurs a N100 charge per N20,000 withdrawal.
• Withdrawals at off-site ATMs (ATMs not directly affiliated with a bank branch) will now attract a N600 charge per N20,000.
These adjustments represent a significant shift in how banking fees are applied, particularly affecting customers who rely on ATMs for frequent withdrawals.
Impact on Customers and Banking Operations
The new fee structure is expected to impact customer withdrawal behavior, with many likely to opt for their own bank’s ATMs to avoid additional charges. However, for those needing to use other banks’ ATMs, particularly at off-site locations, the increased costs may lead to reduced ATM withdrawals and a possible shift toward alternative banking methods, such as mobile banking and POS transactions.
The CBN’s move is seen as part of broader efforts to regulate ATM usage and encourage digital banking adoption. While the adjustment aligns with global trends in ATM fee structuring, it has sparked mixed reactions among bank customers and financial analysts, with concerns about increased transaction costs for everyday banking activities.
What This Means for Bank Customers
With the new charges in place, customers may need to plan withdrawals strategically to minimize fees. Key takeaways include:
• Using your own bank’s ATM remains the best way to avoid withdrawal fees.
• If using another bank’s ATM, on-site withdrawals are cheaper (N100 per N20,000) than off-site withdrawals (N600 per N20,000).
• Exploring mobile banking, POS transactions, or in-bank withdrawals might be cost-effective alternatives.
As the banking sector continues to evolve, customers will need to adapt to these changes while weighing the most efficient and cost-effective ways to access their funds.
