CBN Increases ATM Withdrawal Fees as Operational Costs Rise

The Central Bank of Nigeria, CBN just revised the transaction fees of ATMs which will be effective on March 1, 2025. CBN released the new ATM transaction fee schedule on the 11th of February 2025. According to CBN, this fee was added to subsidize the impact of the increasing operational costs of banks and financial institutions in the country.

It was also noted that the new fee structure applies to both on-site and off-site ATMs, so the cost of cash withdrawals for customers has changed depending on the ATM.

Under the new arrangement, withdrawing N20,000 from an on-site ATM (an ATM belonging to your bank) will now cost N100. For off-site ATMs (machines belonging to other banks or located outside bank premises), you’ll pay N100 plus an additional fee that could go up to N500 for the same transaction. Also, the previous policy of allowing 3 free withdrawals per month from other banks’ ATMs has been discontinued. So if you frequently use ATMs from other banks, you’ll now have to pay extra charges on every transaction.

This policy has generated wide reactions among Nigerians with many expressing concern about the financial burden it will impose especially given the country’s ongoing inflation and economic challenges. Critics say these increased charges will disproportionately affect low-income earners and those who do cash transactions.

Many individual are thinking of ways to minimize their exposure to these fees such as withdrawing cash only from their bank’s ATM to avoid extra charges. Some people are also discussing the impact of frequent ATM usage on customers.

In a related development, CBN has also extended the suspension of processing fees on large cash deposits until March 31, 2025. So if you’re depositing above N500,000 as an individual or above N3 million as a business, you’ll continue to enjoy a fee waiver till the deadline. The policy extension is seen as a temporary relief for businesses and individuals that deal with large cash transactions but it’s uncertain if further extensions will be granted beyond the new deadline.