The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly ATM withdrawals previously available to customers using other banks’ ATMs. Effective March 1, 2025, customers will now be charged for each withdrawal made from an ATM not owned by their bank.
This change impacts the charges outlined in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The update, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, aims to enhance ATM operations and encourage more ATM deployments across Nigeria.
Under the new rules:
- Withdrawals from a customer’s own bank’s ATM will remain free.
- Withdrawals from another bank’s ATM will incur a fee of N100 per N20,000, whether at ATMs located within bank premises or off-site.
- Off-site ATMs will also include a surcharge of up to N500, which must be disclosed at the time of the transaction.
- International ATM withdrawals will be charged according to the rate set by the international acquirer.
The CBN justifies this update by citing rising costs and the need to improve ATM service efficiency. This move is also expected to encourage digital banking, as increased fees on off-site ATMs may prompt more customers to use mobile banking and online transfers.
Additionally, the CBN’s directive follows a recent warning to banks regarding ATM cash availability, with fines imposed on nine banks for failing to meet the requirements during the festive season. These banks were fined N150 million each, amounting to a total of N1.35 billion.
