- The Central Bank of Nigeria said the newly reviewed N100 Automated Teller Machine charge is not an avenue to mop up excess cash
- It said the revised ATM cash withdrawal charge will ensure the availability of cash, especially in remote areas
- The CBN said the new policy is to address banks’ rising operational costs and ensure improved services
The Central Bank of Nigeria (CBN) says the newly reviewed N100 Automated Teller Machine (ATM) charge for cash withdrawals at another bank’s ATM is not an avenue to mop up excess cash.
The acting Director of CBN’s Financial Policy and Regulation Department, John Onoja, stated this during an interview on Arise TV on Tuesday, February 18, where he talked about the apex bank’s latest directive on ATM transactions.
Recall that the CBN, in a circular dated February 10, 2025, released the revised ATM transaction fees, which take effect on March 1.
With the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge. However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction. For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
New ATM fee not to mop up excess liquidity
Onoja stated the move by the CBN is not to mop up excess liquidity as the apex bank has other tools it can deploy to do so.
He said, “There are professional ways of dealing with excess liquidity in this system in Nigeria. The CBN, as the apex monetary policy body in Nigeria, has different tools to deal with that.
“So, if it is to reduce cash in circulation as a result of inflation and all of that, I’m sure the Central Bank has better tools to use and is not going through the ATM issues.
“So, it is not in any way to reduce money in circulation. Rather, it is to even make the money available to those who need it.”
Revised ATM fee is to ensure availability of cash
The CBN’s acting director also noted that the revised ATM cash withdrawal charge is to ensure the availability of cash to those who need it, especially in remote areas without access to technology and the internet.
He also said the move will further drive the adoption of cashless and digital transactions, even as the CBN is enforcing cash availability at ATMs.
“We all know that the other channels that are available to customers and those who do business to transact, the electronic channels, are there.
“It’s important to ensure those who are especially in the remote areas, those who come to the ATMs and don’t find cash, are assured that banks provide cash at the ATMs so that you, as a customer, can go to the machine and get cash. It’s in no way an attempt to reduce cash.
“Cashless does not mean no cash; just like you said, it is relying less on cash and using other ways, other means of transacting business. We know that you can use your cards on merchant PoS to make purchases. You can use that to make payments in almost all transactions and wherever you think you need payment.
“But that does not cancel the fact that some persons may need the raw cash in their pocket, and so the ATM is available for you to be able to have that access to cash. I’ve seen on two or three occasions in the past few days that the Central Bank of Nigeria is concerned with access to cash, and because of that, they are working assiduously,” Onoja said.
New policy to address banks’ rising operational costs, improve services
Onoja further stated that the move will address the rising operational costs of banks in the deployment of ATMs across the country.
On the other hand, he said the policy will ensure that customers receive improved and quality services from their banks.
“It’s also one side on the part of the financial institution so that they’ll be able to also keep up with the cost of doing business and then offer value services to the customers, and also on the side of the customer, it is to be sure that they’re going to have very quality service and value-added services from their bankers,” he said.
Banks must ensure cash availability
Onoja added that banks have to ensure that their customers have access to cash through various outlets.
He urged financial institutions to improve cash availability while advancing digital banking to ease transactions nationwide.
“The Central Bank of Nigeria is not deploying ATMs because we do not have retail customers like individuals, as it were, so the ATMs are outlets to make value available to their customers to be able to have access to cash.
“The over-the-counter position is there, but not everybody will need to go to the banking hall to be able to get cash, especially when the volume is very small.
“And so, it is the responsibility of the commercial banks to deploy outlets where their customers will be able to access cash when they need it, and if the machines are not available to their customers, that is where their customers will need to use the machines provided by other banks, and that is where the issue of paying 100 naira, as the case may be, will come in.
“So, the banks are challenged in their business environment to ensure that their customers do not want to pay extra for using competitors’ ATMs, in which case it means a lot to their business plan. Commercial banks have the responsibility to provide outlets through the ATM,” he said.
CBN says new N100 ATM charge applies on withdrawals of 20k or less
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) clarified the newly reviewed N100 Automated Teller Machine (ATM) charge for cash withdrawals at another bank’s ATM (Not-On-Us transactions), saying the fee applies on withdrawal amounts of up to N20,000 or less.
The CBN explained this in a Frequently Asked Questions (FAQs) document on the review of ATM transaction fees posted on its official X page on Thursday, February 13.
