The Central Bank of Nigeria (CBN) has scrapped its earlier policy allowing three free monthly withdrawals for customers using other banks’ Automated Teller Machines (ATMs).
The CBN directed all banks and financial institutions to implement the new ATM withdrawal charges with effect from March 1, 2025.
The directive was contained in a circular dated February 10, 2025 and signed by John Onojah, acting Director of the Financial Policy and Regulation Department at the CBN.
What this means is that customers will now pay for every withdrawal made from another bank’s ATM.
The review affects the charges prescribed in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
According to the CBN, the new policy is expected to accelerate the deployment of ATMs across the country while ensuring that financial institutions apply appropriate charges for the service.
“The three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”
It clarified that under the new directive, withdrawals made from a customer’s bank ATM remain free while 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.
“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“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. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
The new charges mean that bank customers who frequently use ATMs belonging to other banks will now incur higher costs.
The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.
With banks expected to implement the new structure from 1 March, customers may need to adjust their banking habits to avoid additional fees.
The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.
