The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly ATM withdrawals previously available to customers using ATMs from other banks.
This decision, outlined in a circular dated February 10, 2025, directs all banks and financial institutions to enforce new withdrawal charges starting March 1, 2025.
Under the revised guidelines, customers will now incur fees for every withdrawal made from ATMs of other banks. The update revises Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, explains that the change aims to enhance ATM efficiency and encourage further ATM deployment across the country.
As per the new policy, withdrawals from a customer’s own bank’s ATM will remain free, but using ATMs from other banks will now attract a charge of N100 per N20,000 withdrawn. For off-site ATMs, an additional surcharge of up to N500 will apply.
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International ATM withdrawals will be charged at rates set by international acquirers.
The CBN stated that the charge review was driven by rising operational costs and a need for greater ATM service efficiency. The bank hopes these changes will promote further ATM deployment and encourage more transparent pricing for consumers. As a result, customers frequently using ATMs of other banks may see an increase in fees, and digital banking could become a more attractive alternative.
This development follows the CBN’s earlier actions to ensure banks adhere to guidelines for cash availability via ATMs, resulting in N1.35bn in fines for nine banks found non-compliant during the festive period.
