CBN Revises ATM, PoS Charges as Transactions Fall 20%: What Nigerians Will Pay
- CBN revises ATM withdrawal rules, introducing new fees for using other banks' machines
- PoS transaction volumes drop by nearly 20% amid tightening regulations and increased ATM patronage
- Rising ATM usage signals shift in cash access preferences for Nigerians as PoS agents lament
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s cash-access landscape is changing as the Central Bank of Nigeria (CBN) tightens its rules around ATM withdrawals and agent banking, even as fresh data show PoS transaction volumes falling by almost 20 per cent.
The development comes amid a broader review of banking charges designed to reflect rising operating costs while reshaping how Nigerians access cash.
Source: Getty Images
New ATM charges Nigerians should know
Under the CBN’s revised ATM transaction-fee framework, withdrawals from a customer’s own bank ATM remain free.
However, customers using another bank’s ATM face a ₦100 charge for every ₦20,000 withdrawn from an on-site ATM.
For off-site ATMs, the same ₦100 charge applies, but the ATM operator can impose an additional surcharge of up to ₦500 per ₦20,000 withdrawal. The surcharge must be disclosed to customers before they approve the transaction.
The CBN said the review was driven by rising operating costs and the need to improve the efficiency of ATM services while encouraging greater investment in ATM infrastructure.
The revised charges took effect from March 1, 2025.
PoS agents face a changing market
While ATM users have faced revised charges, PoS operators have also come under tighter regulatory controls.
CBN agent-banking rules have restricted how agents operate, including requirements around terminal providers, operating locations and transaction limits.
The changes come as the latest CBN data show PoS transaction volumes falling sharply.
In Q1 2026, Nigerians carried out 2.92 billion PoS transactions, down 19.9 per cent from the previous year. The value of those transactions also fell 16.4 per cent to ₦59.3 trillion.
ATM activity moved in the opposite direction.
ATM transactions rose 6.6 per cent year-on-year to 438.6 million during the same period, while their value jumped 64.6 per cent to ₦26.3 trillion, TechCabal reports.
Why ATM use is rising again
The shift comes after years in which PoS agents became one of Nigeria’s most important channels for accessing cash.
During the 2023 cash crisis, millions of Nigerians relied heavily on agents because bank branches and ATMs struggled to meet demand.
But the CBN has since taken steps to strengthen the formal ATM network.
In March 2026, the regulator issued new ATM guidelines covering deployment and operations, while requiring card issuers to deploy at least one ATM for every 7,500 payment cards issued over the next three years.
At the same time, the CBN’s cash policy allows individuals to withdraw up to ₦500,000 weekly across channels, although ATM withdrawals are capped at ₦100,000 daily. Withdrawals above the weekly threshold attract excess withdrawal charges, according to a report by BusinessDay.
What it means for Nigerians
For customers, the cost of accessing cash increasingly depends on where they withdraw.
Using your own bank’s ATM remains the cheapest option because there is no CBN-prescribed charge for an on-us withdrawal. Using another bank’s ATM can attract fees, while off-site machines may carry an additional surcharge.
The latest transaction figures suggest these changes are unfolding alongside a broader shift in consumer behaviour.
Source: UGC
PoS agents remain vital, particularly in neighbourhoods with limited banking infrastructure. But rising ATM usage indicates that banks may be gradually reclaiming some of the cash-access market they lost to agents.
With the CBN simultaneously regulating agent banking and encouraging stronger ATM infrastructure, Nigeria’s cash economy could be entering a new phase where convenience, availability and transaction costs determine whether customers choose an ATM or a PoS terminal.
CBN exposes fraud-linked BVNs
Legit.ng earlier reported that the CBN's recent report revealed a significant increase in fraudulent Bank Verification Numbers (BVNs) linked to financial crimes.
With a notable rise in fraud cases and a contraction in consumer credit, the banking sector is under pressure to adapt to evolving challenges.
This crackdown comes as Nigeria grapples with high borrowing costs, posing obstacles for households seeking credit amidst a backdrop of financial crime concerns.
Source: Legit.ng
