The Central Bank of Nigeria (CBN) has announced the scrapping of free withdrawals for customers using Automated Teller Machines (ATMs) belonging to other banks.
Previously, customers were allowed three free withdrawals per month, but this policy has now been reviewed due to rising costs and the need to improve the efficiency of ATM services.
In the new directive, CBN 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.”
However, withdrawals made from a customer’s bank ATM will remain free. For customers using another bank’s ATM, a fee of N100 per N20,000 withdrawal will apply when the ATM is located within the bank’s premises.
For off-site ATM withdrawals, the same N100 per N20,000 withdrawal charge will apply, but with an additional surcharge of up to N500. According to the CBN, the surcharge, which is an income for the ATM deployer or acquirer, must be disclosed at the point of withdrawal.
International ATM withdrawals will be charged according to the exact rate set by the international acquirer.
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The CBN’s circular, dated February 10, 2025, reads: “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).”
The circular further explains that this review is intended to “accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
The new charges are set to take effect from March 1, 2025.