The Central Bank of Nigeria (CBN) has removed the three free monthly withdrawals previously granted to customers using other banks' ATMs.
In a circular dated February 10, 2025, the CBN instructed all financial institutions to enforce new ATM withdrawal charges starting March 1, 2025. This means customers will now pay for every withdrawal made from another bank’s ATM.
According to the circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the policy aims to accelerate the deployment of ATMs while ensuring that financial institutions apply appropriate charges.
Key Changes in the New ATM Charges:
- No more free ATM withdrawals at other banks' ATMs.
- Withdrawals at another bank’s ATM will now incur a charge of ₦100 per ₦20,000 withdrawal when using ATMs located within bank premises.
- Withdrawals at off-site ATMs will attract a ₦100 charge per ₦20,000, plus an additional surcharge of up to ₦500, which will go to the ATM deployer.
- International ATM withdrawals will be charged based on the exact rate set by the international acquirer.
The CBN cited rising costs and the need for efficiency in ATM operations as reasons for the new charges. The directive aligns with efforts to encourage cashless transactions and ensure better banking services.
This policy comes after the CBN recently fined nine banks a total of ₦1.35 billion for failing to ensure cash availability at ATMs during the festive season. Each bank was fined ₦150 million, with the penalty deducted directly from their CBN accounts.
With these new charges, customers who frequently use ATMs from other banks may need to adjust their banking habits to avoid additional costs.
