By Tochukwu Bliss, Abuja
Effective March 1, customers seeking to withdraw money from other banks’ Automated Teller Machines (ATMs) must be prepared to pay more for the transactions, according to the Central Bank of Nigeria (CBN).
The new directive is contained in a circular signed on Monday by the CBN’s acting Director, Financial Policy and Regulation Department, John Onojah.
However, the same bank withdrawals remain free.
Under the review, ATM withdrawal of N20,000 by a customer on the premises of another bank would be charged N100.
Additionally, ATM withdrawal from another bank but not on the bank’s premises would attract N500.
The circular reads further: “On-Us, (Customers withdrawing at the ATM of the customer’s financial institution) in Nigeria is free.
“Not-On-Us transactions, (Withdrawal from another financial institution’s ATM) in Nigeria, On-site ATMs: A charge of N100 per N20,000 withdrawal.
“Off-site ATMs: A charge of N100 plus a surcharge of not more than N500 per N20,000 withdrawal,” which is an income of the ATM deployer/acquirer shall be disclosed at the point of withdrawal to the customer.
“International withdrawals (per transaction) whether debit/credit card: Cost Recovery- exact charge by international acquirer.”
The apex bank defended that the policy review is in response to rising costs and the need to improve efficiency of ATM services in the banking industry, in line with Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020. (the Guide).
Noting that the last review was in 2019, when withdrawal fee was reduced from N65 to N35, this latest policy, “is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
Financial institutions are therefore charged to comply with the new directives ahead of the implementation date.
Not-On-Us transactions, (Withdrawal from another financial institution’s ATM) in Nigeria, On-site ATMs: A charge of N100 per N20,000 withdrawal. Off-site ATMs: A charge of N100 plus a surcharge of not more than N500 per N20,000 withdrawal.
