The Central Bank of Nigeria (CBN) has announced the elimination of the three free monthly withdrawals previously allowed for customers using other banks’ Automated Teller Machines (ATMs).
This decision, outlined in a circular dated February 10, 2025, will take effect from March 1, 2025.
In the circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges.
This move is expected to accelerate the deployment of ATMs across the country while ensuring that financial institutions apply appropriate charges for the service.
The circular stated, “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 directive, withdrawals made from a customer’s own bank ATM will remain free. However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.
For off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500. The surcharge, which will be an income for the ATM deployer or acquirer, must be disclosed at the point of withdrawal.
The CBN also clarified that international ATM withdrawals would be charged at the exact rate set by the international acquirer.
The apex bank attributed the review to rising costs and the need to enhance efficiency in 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.”
The new charges mean that bank customers who frequently use ATMs belonging to other banks will now incur higher costs. The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.
This review of ATM charges follows a recent warning by the CBN that any bank found not dispensing cash via ATMs would be sanctioned.
The CBN recently fined nine Deposit Money Banks a total of N1.35 billion for failing to ensure cash availability via ATMs during the festive season.
Each of the banks was fined N150 million following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
The affected banks 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 were directly debited from the banks’ accounts with the CBN.
The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.
With the new charges set to take effect from March 1, 2025, customers may need to adjust their banking habits to avoid additional fees.
