The Central Bank of Nigeria, CBN, has announced new charges for the use of Automated Teller Machines, and ATMs.

This was revealed in a circular signed by the apex bank’s acting director of the financial policy and regulation department, John Onojah.

The revised charges will take effect from March 1.

CBN has explained that this would address rising operational costs and enhance efficiency in the banking sector.

It noted that the review is in line with Section 10.7 of the ‘CBN guide to charges by banks, and other financial and non-bank financial institutions (2020)’.

ATM transaction charges were last reviewed in 2019 when the CBN reduced withdrawal fees from N65 to N35.

According to this new policy, customers withdrawing from their bank ATMs (on-us transactions) will continue to enjoy free withdrawals.

However, an N100 fee will apply per N20,000 withdrawal at on-site ATMs (those located at bank branches).

For withdrawals at ATMs of other banks (Not-on-Us transactions), an off-site withdrawal will attract an N100 fee plus a surcharge of up to N450 per N20,000 withdrawal.

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.