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Tag: ATM charges

  • CBN introduces new ATM transaction fees

    CBN introduces new ATM transaction fees

    The Central Bank of Nigeria (CBN) has introduced new transaction fees for Automated Teller Machines (ATMs), set to take effect on March 1, 2025.

    In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges from March 1, 2025.

    This means customers will now pay for every withdrawal made from another bank’s ATM.

    The review affects the charges prescribed in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).

    A circular, signed by John Onojah, the acting director of the financial policy and regulation department, explained that the revised charges aim to address increasing operational costs and enhance the efficiency of banking services.

    It read, “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 shall no longer apply.”

    Under the new directive, withdrawals made from a customer’s bank ATM will remain free.

    However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.

    For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.

    The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.

    The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.

    The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.

    The circular read, “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

    “This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

    The new charges mean that bank customers who frequently use ATMs belonging to other banks will now incur higher costs.

    The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.

    With banks expected to implement the new structure from 1 March, customers may need to adjust their banking habits to avoid additional fees.

    The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.

    This review of ATM charges occurred after a warning to the banks by the CBN that any bank found not dispensing cash via ATMs would be sanctioned.

    The CBN recently sanctioned nine Deposit Money Banks with fines totalling N1.35bn for failing to ensure cash availability via ATMs during the festive season.

    Each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.

    The affected banks included Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

    The fines would be directly debited from the banks’ accounts with the CBN.

  • COVID-19 Lockdown: PDP demands immediate suspension of ATM, electricity charges

    The Peoples Democratic Party (PDP) has called for the suspension of charges for use of ATM cards and low amount mobile fund transfers during the COVID-19 lockdown.

    According to a statement by the party’s National Publicity Secretary, Mr Kola Ologbondiyan, on Sunday in Abuja, the suspension of such charges should be part of the panacea to ease the burden on poor Nigerians during the lockdown.

    The party called on the Central Bank of Nigeria (CBN) to immediately open an arrangement with commercial banks to suspend the charges.

    Ologbondiyan said the lockdown had subjected the majority of Nigerians to extensive use of ATM and mobile transfers for survival, making the suspension of charges on minimal transactions within this period of restriction highly imperative.

    He said that the lifting of the charges within the period of COVID-19 pandemic would ease the burden on cash withdrawals by vulnerable citizens and encourage more Nigerians to support one another at this critical time.

    “The PDP demands the CBN to immediately liaise with commercial banks and stimulate a special social sustenance modality to defray the cost of such charges, particularly to cover minimal transactions in favour of vulnerable Nigerians.

    The party urges the federal government to activate similar social sustenance scheme to immediately defray electricity tariff, particularly in areas populated by low income and vulnerable Nigerians across the country within the period of the lockdown.

    “The PDP calls on the federal government to show compassion on suffering Nigerians whose means of subsistence has been crippled by the lockdown, and immediately provide funds to electricity distribution companies to actuate the tariff suspension within this period.

  • Senate asks CBN to suspend ‘excessive’ ATM charges, N10,000 maximum withdrawal

    Senate asks CBN to suspend ‘excessive’ ATM charges, N10,000 maximum withdrawal

    The Senate on Wednesday asked its committees on Banking, Insurance & other Financial Institutions and Finance to invite the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele over the apex’s bank approval of ‘illicit and excessive’ and the N10,000 maximum withdrawal at ATM centres.
    The committees are also to investigate the propriety of ATM Card maintenance charges in comparison with international best practices and report back to the Senate.
    These resolutions were sequel to a motion sponsored by Gbenga Ashafa (APC, Lagos East) on “Illicit and Excessive Charges by Nigerian Banks on customers account with particular focus on Automated Teller Machine (ATM) Maintenance and Withdrawal Charges.”
    Ashafa noted there have been several complaints from Nigerians generally and on social media concerning illicit and excessive charges by commercial banks on customers’ account with particular focus on ATM maintenance charges and ATM withdrawal charges.
    Recall that the CBN in 2017 increased the maintenance fees charged by banks on debit and credit card maintenance from N100 a year to N50 per month (N600 a year) as contained in its “Guide to Charges by Banks and other Financial Institutions.”
    Ashafa referred to a viral campaign that began on social media on September 3, where many Nigerians called for reforms of the banks.
    The lawmaker also expressed worry that most banks have deliberately manipulated their ATM not to dispense more that N10,000 per withdrawal in some cases and in most cases not more than N20,000.
    “This is a deliberate ploy to manipulate the ATM machines which are ordinarily manufactured to dispense as much as N40, 000 per transaction, in order to attract more bank charges from customers who are forced to carry out more transactions due to the manipulated machines.
    “It appears the CBN is becoming insensitive to the plight of Nigerians who are already complaining of excessive charges by commercial banks. If the CBN is trying to encourage a cashless Nigeria, why should they be making it more difficult and expensive for Nigerians to do transactions,” he said.
    In his contribution, the Deputy Senate President, Ike Ekweremadu, lamented that ATM charges are not the only charges on customers by banks. He said the CBN has the responsibility to protect the interests of Nigerians and not just make money for other banks.
    He also said the Consumer Protection Council (CPC) is not “living to expectation.”Mr Ekweremadu, thereafter, urged the Senate to call the institutions to order and protect the interest of customers.
    The Senate, thereafter, urged banks to allow N40,000 maximum per withdrawal through an ATM and not N10,000.
    Other resolutions made by the Senate are “urge the Central Bank of Nigeria to suspend the ATM Card Maintenance Charges being deducted from customers account pending the outcome of the investigation by the Committees and
    “Urge the Consumer Protection Council to be up and doing in taking up the plight of ordinary Nigerians by looking into the various complaints of excess and unnecessary charges by Nigerian Banks.”