Babatunji Wusu –
- The Central Bank of Nigeria (CBN) has removed the three free monthly ATM withdrawals for customers using other banks’ ATMs.
- New charges, effective from March 1, 2025, include N100 per N20,000 withdrawal at on-site ATMs and a surcharge of up to N500 for off-site ATMs.
- Withdrawals from a customer’s own bank’s ATM remain free.
- The CBN aims to improve ATM service efficiency and accelerate ATM deployment across Nigeria.
In a move to enhance Automated Teller Machine (ATM) operations, the Central Bank of Nigeria (CBN) has eliminated the previous policy of offering three free monthly withdrawals for customers using ATMs of other banks. According to a circular dated February 10, 2025, all banks and financial institutions are mandated to apply new withdrawal charges starting from March 1, 2025.
Under the revised guidelines, withdrawals made from a customer’s own bank’s ATM will remain free of charge. However, customers who use ATMs from different banks will now incur a fee of N100 per N20,000 withdrawal if the ATM is located within the premises of the bank. For withdrawals made at off-site ATMs, customers will face an additional surcharge of up to N500, in addition to the N100 charge per N20,000 withdrawal. The surcharge, which will be retained by the ATM operator, must be clearly disclosed at the point of withdrawal.
The CBN has stated that the decision to revise the ATM charges is driven by rising operational costs and a need to enhance the overall efficiency of ATM services in the country. The new charges are also expected to encourage banks to increase the number of ATMs across Nigeria while ensuring fair pricing for their use.
In addition, the CBN has indicated that international ATM withdrawals will be charged at the rates set by the respective international acquirer. This move is part of the CBN’s broader strategy to promote a cashless economy and encourage greater use of digital banking channels, such as mobile apps and online transfers.
As the new charges come into effect, bank customers who frequently use other banks’ ATMs will need to adjust their banking habits to avoid the higher fees. The CBN’s directive follows a previous warning to banks regarding compliance with cash availability in ATMs, which led to sanctions for nine banks that failed to meet cash distribution standards during the festive season.
