NIGERIA: CBN Ends Free ATM Withdrawals for Other Banks’ Customers, Introduces New Charges

By Ameenat Hamzat, Lagos, Nigeria 

The Central Bank of Nigeria (CBN) has scrapped the three free monthly withdrawals previously allowed for customers using ATMs of other banks aside their own.

This development is expected to take effect from March 1, 2025.

According to a circular dated February 10, 2025, and signed by the Acting Director of the Financial Policy and Regulation Department, John Onojah, the new policy mandates that customers will now incur charges for every withdrawal made from an ATM not operated by their bank.

Under the new directive, withdrawals made at a customer’s own bank ATM will remain free.

However, those using other banks’ ATMs will now be charged N100 per N20,000 withdrawal at bank premises.

For off-site ATMs, an additional surcharge of up to N500 may apply, with the ATM deployer benefiting from the surcharge.

The CBN also stated that the decision was driven by rising operational costs and the need to enhance efficiency in ATM services.

The policy is also expected to accelerate ATM deployment across the country while encouraging digital banking alternatives.

The circular reads:” 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 (CBN) 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.”

International ATM withdrawals will now be charged at the exact rate set by the international acquirer, further reinforcing the CBN’s ongoing efforts to promote cashless transactions.

This adjustment comes after the CBN sanctioned nine Deposit Money Banks with a total fine of N1.35 billion for failing to ensure adequate cash availability at ATMs during the festive season. Each bank was fined N150 million for non-compliance with cash distribution regulations.