How to Reduce ATM Charges in Nigeria
Automatic Teller Machine (ATM) charges are one of the most common banking costs faced by Nigerians, especially as cash remains widely used. Unlike some other bank fees, ATM charges are regulated and structured by the Central Bank of Nigeria (CBN) but still can add up quickly if you’re not careful. Understanding how these charges work and how to avoid or reduce them can save you significant money.
The Current ATM Fee Structure in Nigeria
As of March 1, 2025, the Central Bank of Nigeria (CBN) revised the ATM transaction fee rules applicable to all banks:
- On-Us transactions (your bank’s own ATM): Withdrawals are free.
- Not-On-Us transactions (other banks’ ATMs):
₦100 per ₦20,000 (base fee) at ATMs within bank premises.
₦100 per ₦20,000 plus a surcharge of up to ₦500 at off-site ATMs (e.g., malls, fuel stations).
- International ATM withdrawals: Charged at the exact cost imposed by the foreign ATM Acquirer.
Importantly, the previous policy of three free inter bank ATM withdrawals per month has been removed under the new CBN directive. Every withdrawal at another bank’s ATM now attracts charges.
Why Reducing ATM Charges Matters
With the removal of free monthly withdrawals, customers who frequently use ATMs that aren’t owned by their bank pay more in fees particularly those who:
- Rely on cash over digital payments
- Work in areas without their bank’s ATM network
- Need cash outside normal banking hours
Remember: ATM charges are not “optional”; each withdrawal from another bank’s ATM results in a direct deduction from your account once you confirm the transaction. Reducing these charges adds up to real savings over time.
Practical Ways to Reduce ATM Charges
- Always Use Your Own Bank’s ATMs (On-Us Transactions)
This is the single most effective strategy. Withdrawals from your bank’s ATM are free of charge no matter the location or amount, even if the ATM is off-site.
Tip: Before you travel or go out, identify where your bank’s ATMs are located (e.g., via your bank’s app or a branch map).
- Plan Withdrawals in Larger Amounts
Because the fee structure is per ₦20,000 withdrawn, splitting withdrawals into small amounts costs more:
Example:
Withdrawing ₦20,000 costs ₦100 (at other banks’ ATMs).
Strategy: Combine cash needs into fewer withdrawals to reduce the number of fee events.
- Avoid Off-Site ATMs if Possible
ATMs located outside bank branches (e.g., malls, petrol stations, markets) typically include a surcharge up to ₦500 on top of the base fee.
If free or low-charge options are available:
- Use your bank’s ATMs
- Use ATMs at the bank’s branch or official locations
Avoid off-site ATMs to save on the surcharge component.
- Use Digital Channels Where Possible
Cashless alternatives can often eliminate ATM withdrawal fees entirely:
- Mobile banking apps for bills and transfers
- POS (Point-of-Sale) payments where merchants allow it
- USSD transfers (e.g., *901# services)
- Internet banking
These options can help you reduce physical ATM withdrawals and cut costs. Many banks and fintech services encourage digital usage over cash.
- Consolidate Banking with One Institution
If you hold multiple accounts across banks, each with its own ATM network:
You may use “other bank” ATMs more often and incur fees.
Consolidating accounts can reduce reliance on out-of-network ATMs.
- Monitor ATM Charge Displays :By regulation, banks should display the fee and surcharge before you confirm a transaction. Always check the on-screen fee and cancel if costs are too high.
Understanding Additional Fee Nuances
International ATM Withdrawals:
Charges for withdrawals abroad are not capped by CBN rules. Instead, they are based on the actual cost imposed by foreign acquirers, which can include currency conversion and foreign bank fees.
Balance Inquiry Fees
Some banks may charge for checking your balance at ATMs especially other banks’ machines,so check the final screen before confirming.
Why Nigeria’s ATM Fee Landscape Changed
The CBN’s 2025 revision was aimed at:
- Addressing rising operational costs for ATM deployment
- Enhancing service efficiency
- Encouraging adoption of digital payment alternatives
However, the change has also sparked debate about consumer impact, with some lawmakers calling for a suspension of the new fees due to hardship concerns.
Cost-Saving Checklist
Use this quick checklist to reduce what cost you spend on ATM charges:
- Only use your bank’s ATMs
- Combine withdrawals into larger amounts
- Avoid off-site ATMs with surcharges
- Use digital banking and POS options
- Consolidate accounts to one bank’s network
- Check fee displays before confirming withdrawals
Conclusion
ATM fees in Nigeria have become less forgiving, especially with the removal of free inter-bank withdrawals. However, you can significantly reduce or eliminate these charges by planning ahead, using your bank’s ATM network, and embracing digital channels.
Understanding fee structures and acting on them gives you control over how much you spend just to access your own money.
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