New ATM Withdrawal Fees Take Effect: What You Need to Know

New ATM Withdrawal Fees Take Effect: What You Need to Know

As of March 1, Nigerian banks have begun charging a N100 fee for ATM transactions, in line with the Central Bank of Nigeria’s (CBN) revised fee structure. This change affects customers who use ATMs of other banks to withdraw cash.

Key Highlights of the Revised Fee Structure

– Withdrawals from your own bank’s ATM remain free of charge.
– Using another bank’s on-site ATM (located within or directly affiliated with a bank branch) will incur a N100 charge per withdrawal of N20,000 or less.
– Off-site ATMs (positioned outside bank premises, such as shopping malls or fuel stations) will attract an additional surcharge of up to N500 per transaction.
– International ATM withdrawals will be charged based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.

Understanding the Implications:

The revised fee structure aims to encourage customers to use their own bank’s ATMs or explore alternative payment methods, such as mobile banking or online transactions. While the N100 fee may seem nominal, it’s essential to be mindful of these charges, especially for frequent users of other banks’ ATMs.

Tips to Minimize ATM Fees:

– Plan your withdrawals in advance to minimize the need for frequent ATM transactions.
– Use your own bank’s ATM whenever possible.
– Consider alternative payment methods, such as mobile banking or online transactions.
– Be aware of the fees associated with off-site ATMs and international transactions.

By understanding the revised fee structure and taking steps to minimize ATM fees, you can make more informed financial decisions and avoid unnecessary charges.