The Central Bank of Nigeria (CBN) has abolished free withdrawals for customers using ATMs of other banks, which was previously limited to three free withdrawals per month.
CBN said the review was necessary due to rising costs and the need to improve efficiency of ATM services.
Under the new directive from the Central Bank of Nigeria (CBN), the previously allowed three free monthly withdrawals for customers using other banks’ ATMs will no longer apply. Customers will now incur charges for these withdrawals.
Key changes include:
- Withdrawals from a customer’s own bank ATM will remain free of charge.
- For withdrawals from another bank’s ATM located within the bank’s premises, a fee of N100 per N20,000 will apply.
- For withdrawals at off-site ATMs, a charge of N100 per N20,000 will be imposed, along with a surcharge of up to N500. The surcharge must be disclosed at the point of withdrawal.
- International ATM withdrawals will be charged based on the rates set by the international acquirer.
This new policy, which takes effect from March 1, 2025, is intended to address rising costs and improve the efficiency of ATM services in the banking sector. The CBN made this announcement through a circular issued on February 10, 2025.
The Central Bank of Nigeria (CBN) stated that the review of ATM transaction fees is aimed at accelerating the deployment of ATMs across the country. The new directive also ensures that financial institutions apply appropriate charges to consumers using these services. The changes are expected to improve efficiency in the banking sector while addressing the rising costs of ATM operations.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
