The Central Bank of Nigeria (CBN) has announced the removal of free Automated Teller Machine (ATM) withdrawals for customers using ATMs of other banks. This means bank customers will now incur charges when withdrawing cash from ATMs that do not belong to their respective banks.

Previously, customers were entitled to a set number of free withdrawals before charges applied. However, with this new policy, every withdrawal from another bank’s ATM will attract fees, increasing the cost of accessing cash for many Nigerians.

This policy shift, outlined in a circular dated February 10, 2025, directs all banks and financial institutions to implement new ATM withdrawal charges starting March 1, 2025. As a result, customers will now incur fees on every withdrawal made from an ATM that does not belong to their bank.

The changes modify the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020), specifically affecting Section 10.7.

The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, emphasizes that the new charges aim to accelerate ATM deployment nationwide while ensuring financial institutions apply appropriate fees for the service.

It states: “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 revised policy:

• Withdrawals from a customer’s own bank’s ATM will remain free.
• Withdrawals from another bank’s ATM within a bank’s premises will now attract a charge of ₦100 per ₦20,000 transaction.
• Withdrawals at off-site ATMs (outside bank premises) will also be charged ₦100 per ₦20,000 transaction, with an additional surcharge of up to ₦500.
• International ATM withdrawals will be charged at rates set by the international acquirer.

The CBN clarified that the surcharge collected from off-site ATM transactions would serve as income for the ATM deployer or acquirer, and the amount must be disclosed at the point of withdrawal.

The review comes in response to rising costs and the need to enhance efficiency in ATM operations, according to the CBN.

The circular further stated: “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. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

This development follows the CBN’s recent warning that banks failing to dispense cash at ATMs would face penalties. In December, the apex bank fined nine Deposit Money Banks a total of ₦1.35 billion for failing to ensure cash availability during the festive season.

Each of the affected banks—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—was fined ₦150 million after inspections revealed non-compliance with cash distribution guidelines.

The fines would be directly deducted from the banks’ accounts with the CBN.

With the new ATM withdrawal charges set to take effect, customers are advised to review their banking habits to minimize transaction costs while adapting to the new policy changes.

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