CBN imposes new tax on bank customers
The Central Bank of Nigeria, CBN, has announced a new tax regime on bank customers.
The apex bank, in a circular signed by John Onojah, Acting Director, Financial Policy and Regulation, indicated that customers will be charged for every ATM transaction through other banks.
This has cancelled the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
The circular dated February 10, 2025, directed all banks and financial institutions to implement the new ATM withdrawal charges with effect from March 1, 2025.
The review affects the charges contained in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions 2020.
Under the new directive, withdrawals made from a customer’s bank ATM will remain free, but customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.
For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.
The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.
The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.
The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
