The Central Bank of Nigeria (CBN) has eliminated the three free monthly withdrawals previously granted to bank customers using other banks’ ATMs.
In a circular dated February 10, 2025, the CBN directed all banks and financial institutions to enforce new ATM withdrawal charges starting March 1, 2025**. This means that customers will now incur a fee for every withdrawal made from an ATM that does not belong to their bank.
The review affects the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020), specifically Section 10.7. The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, explained that the change aims to accelerate ATM deployment across the country while ensuring appropriate service charges are applied.
Under the new directive withdrawals made at a customer’s own bank’s ATM remain free. However, customers withdrawing from another bank’s ATM within bank premises will be charged N100 per N20,000 withdrawal. Off-site ATM withdrawals will also incur a N100 charge per N20,000 withdrawal, along with an additional surcharge of up to N500. This surcharge will go to the ATM deployer or acquirer and must be clearly disclosed at the point of withdrawal.
Furthermore, international ATM withdrawals will be charged at rates set by the international acquirer, according to the CBN. The policy change is attributed to rising operational costs and efforts to enhance ATM efficiency in the banking industry.
The CBN emphasized that the review aligns with its broader push for cashless transactions, encouraging customers to leverage digital banking channels such as mobile apps and online transfers to avoid higher fees.
Additionally, this decision follows recent warnings by the CBN to banks regarding ATM cash availability. The apex bank recently fined nine commercial banks a total of N1.35 billion for failing to ensure ATMs dispensed cash during the festive season. Each of the affected banks—Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, UBA, and Sterling Bank—was fined N150 million. The fines were debited directly from the banks’ accounts with the CBN.
With the new ATM withdrawal charges set to take effect on March 1, customers may need to adjust their banking habits to avoid additional costs.
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