Nigeria: CBN reintroduces charges on "other ATMs" cash withdrawals

Aug 18, 2014

The Central Bank of Nigeria (CBN) has instructed deposit money banks in the country to re-introduce a charge of N65 (€0.30) per transaction on "remote-on-us" cash withdrawals at automated teller machines (ATMs).

The Central Bank of Nigeria (CBN) has instructed deposit money banks in the country to re-introduce a charge of N65 (€0.30) per transaction on "remote-on-us" cash withdrawals at automated teller machines (ATMs).


"Remote-on-us" transactions are done by a card holder on another bank's ATM.


The policy takes effect from September 1st 2014, according to the central bank's circular addressed to all banks on August 13, 2014, This Day reports.

This decision effectively overturns Nigerian banks' decision in December 2012 to waive the issuer fee and bear the cost of N65 for each transaction at another bank's ATM.

The central bank explained that it decided to reintroduce the fee as banks incurred a substantial cost burden as a result of deferring the cost for the service.

"The new charge shall apply as from the fourth remote-on-us withdrawal (in a month) by a card holder, thereby making the first three remote-on-us transactions free for card holders, but to be paid for by the issuing bank," the circular states.

However, it said that all ATM cash withdrawals on the ATM of issuing banks shall be at no cost to the cardholder.ADNFCR-2976-ID-801742902-ADNFCR