The Central Bank of Nigeria has discontinued the three free monthly withdrawals that customers were previously allowed when using ATMs from banks other than their own.
In a circular issued on February 10, 2025, the central bank instructed all banks and financial institutions to begin applying new ATM withdrawal fees starting March 1, 2025.
This change means that customers will now incur charges for each withdrawal made from another bank’s ATM.
The update revises the charges outlined in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).
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The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, aims to accelerate the spread of ATMs across the country while ensuring financial institutions apply the correct fees for their services.
It read, “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.”
Under the new policy, withdrawals made from a customer’s own bank’s ATM will remain free of charge.
However, customers using an ATM from a different bank will now face a fee of N100 for every N20,000 withdrawn from ATMs located within the bank’s premises.
For withdrawals from off-site ATMs, a charge of N100 per N20,000 will apply, along with an additional surcharge of up to N500.
This surcharge, which will be kept by the ATM operator or acquirer, must be clearly disclosed to customers at the time of withdrawal.
The CBN also mentioned that international ATM withdrawals will incur charges at the rate set by the international acquirer.
The central bank explained that this adjustment is in response to increasing costs and the need to improve the efficiency of ATM operations.
The circular read, “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 will result in higher costs for bank customers who frequently use ATMs from other banks.
The introduction of additional surcharges for off-site ATMs may also encourage more people to turn to digital banking methods, such as mobile apps and online transfers.
As banks are expected to start implementing the new fee structure on March 1, customers may need to adjust their banking habits to avoid extra charges.
This move by the CBN aligns with ongoing efforts to encourage cashless transactions, a policy that has received increased regulatory focus in recent years.
The change in ATM charges follows a warning from the CBN to banks, stating that any institution failing to provide cash through ATMs would face penalties.
The CBN recently imposed fines totaling N1.35bn on nine Deposit Money Banks for failing to ensure cash availability at ATMs during the festive season.
Each of these banks was fined N150m after spot checks revealed violations of the CBN’s cash distribution regulations.
The banks affected by the fines included 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.
The fines will be directly deducted from the banks’ accounts with the CBN.
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