Beginning Saturday, commercial banks across Nigeria will implement a new charge of N100 for transactions conducted at Automated Teller Machines (ATMs), as outlined in revised guidelines issued by the Central Bank of Nigeria (CBN).
The updated ATM transaction fee structure was announced in a circular dated February 10, 2025. According to the new regulations, withdrawals from a customer’s own bank’s ATMs will remain free of charge. However, customers utilizing ATMs belonging to other banks will incur a fee of N100 per withdrawal for amounts of N20,000 or less at on-site ATMs, which are those located within or directly linked to a bank branch.
For off-site ATMs, positioned in locations such as shopping malls, fuel stations, and public areas, an additional surcharge of up to N500 will apply per transaction. Furthermore, international ATM withdrawals will incur fees based on cost recovery, meaning that the charges will reflect the actual fee imposed by the international acquirer.
The Socio-Economic Rights and Accountability Project (SERAP) has initiated a lawsuit against the CBN, challenging the “unlawful, unfair, unreasonable, and unjust increase in Automated Teller Machine transaction fees.” Last Monday, SERAP urged CBN Governor Mr. Olayemi Cardoso to reverse the fee increase, emphasizing the need to ensure that CBN’s regulatory responsibilities do not exacerbate the hardships faced by low-income Nigerians and contribute to human rights violations. In a suit filed last Friday at the Federal High Court in Lagos, labeled FHC/L/CS/344/2025, SERAP is requesting a judicial review to determine whether the CBN’s decision to raise ATM fees is arbitrary and in violation of the Federal Competition and Consumer Protection Act 2018.
The CBN clarified that withdrawing less than N20,000 from another bank’s ATM will still attract the N100 fee. The CBN characterized this decision as necessary due to escalating costs and aims to enhance the efficiency of ATM services within the banking sector. However, this move has sparked significant backlash from various groups.
(Report Afrique)
