The Central Bank of Nigeria, CBN, has scrapped the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
In a circular dated February 10, 2025, the apex bank directed all financial institutions to implement new ATM withdrawal charges starting March 1, 2025.
Under the revised policy, customers will now pay for every withdrawal made from another bank’s ATM.
The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, amends Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,.
Withdrawals from a customer’s own bank ATM remain free. However, withdrawal from another bank’s ATM will incur a N100 charge per N20,000 transaction at on-site, bank premises, ATMs.
Off-site ATMs, outside bank premises, will attract an additional surcharge of up to N500, which will go to the ATM deployer or acquirer, while International ATM withdrawals will be charged at the rate set by the foreign bank or payment processor.
The CBN stated that the revision was necessary due to rising operational costs and the need to improve ATM service efficiency.
The bank also expects the move to encourage wider deployment of ATMs across the country.
The new charges mean customers who frequently use ATMs from other banks will face higher transaction costs. Additionally, the surcharge on off-site ATMs could push more users toward digital banking channels like mobile apps and online transfers.
As banks prepare to implement the revised fee structure on March 1, customers may need to adjust their withdrawal habits to avoid extra costs.
This policy shift follows recent CBN enforcement actions against banks failing to ensure ATM cash availability.
In a separate directive, the CBN fined nine commercial banks a total of N1.35 billion for not dispensing cash during the festive season.
The affected banks—Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank—were each fined N150 million, debited directly from their CBN accounts.
The CBN’s latest directive aligns with its broader push for a cashless economy, reinforcing its regulatory focus on digital transactions and financial inclusion.
