The Central Bank of Nigeria (CBN) has scrapped the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to enforce new ATM withdrawal charges starting March 1, 2025. This means customers will now be charged for every withdrawal made from an ATM that does not belong to their bank.
The revised charges affect Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020). According to the circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the move is aimed at boosting ATM deployment nationwide while ensuring banks apply appropriate fees for the service.
“The three free monthly withdrawals allowed for Remote-On-Us transactions (customers using other banks’ ATMs) under Section 10.6.2 of the Guide shall no longer apply,” the circular stated.
Under the new directive, withdrawals made from a customer’s own bank’s ATM remain free. However, for transactions at other banks’ ATMs, customers will now be charged as follows:
- On-site ATMs (located within bank premises): N100 per N20,000 withdrawal.
- Off-site ATMs (outside bank premises): N100 per N20,000 withdrawal, plus a surcharge of up to N500.
The surcharge, which will be retained by the ATM deployer or acquirer, must be clearly displayed at the point of withdrawal.
Additionally, international ATM withdrawals will be charged at the rates set by the respective international acquirers.
The CBN cited rising operational costs and the need to improve efficiency in ATM services as reasons for the policy change.
“In response to increasing costs and to enhance the efficiency of Automated Teller Machine (ATM) services in the banking sector, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges,” the circular explained.
This adjustment is expected to drive the deployment of more ATMs across the country while ensuring that customers are charged appropriately for using the service.
The revised charges mean bank customers who frequently use ATMs from other banks will now face higher costs. The additional surcharge on off-site ATMs could also push more customers toward digital banking alternatives such as mobile apps and online transfers.
With the new fee structure taking effect from March 1, 2025, customers may need to reconsider their banking habits to minimize extra charges.
The policy review follows a recent warning from the CBN to banks regarding cash availability at ATMs. The apex bank had sanctioned nine Deposit Money Banks (DMBs) with fines totaling N1.35 billion for failing to ensure cash availability during the festive season.
Each of the banks—Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc—was fined N150 million. The fines were directly debited from their accounts with the CBN.
The new ATM charges align with the CBN’s broader push for a cashless economy, a policy that has received increased regulatory focus in recent years.
