CBN eliminates three free monthly ATM withdrawals for customers using other banks’ ATMs

CBN eliminates three free monthly ATM withdrawals for customers using other banks’ ATMs

The Central Bank of Nigeria (CBN) has removed the three free monthly ATM withdrawals previously allowed for customers using other banks’ ATMs.

This policy change, outlined in a circular dated February 10, 2025, applies to all financial institutions and will take effect from March 1, 2025.

Under the revised guidelines, withdrawals from a customer’s own bank’s ATM remain free. However, using another bank’s ATM will now attract charges. On-site ATMs (within bank premises) will incur a N100 fee per N20,000 withdrawal, while off-site ATMs (outside bank premises) will carry the same N100 charge plus an additional surcharge of up to N500.

International withdrawals will be subject to fees determined by the international acquirer.

This adjustment, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, reflects the CBN’s strategy to improve ATM efficiency and offset rising costs in the banking sector. The regulator believes that enforcing these charges will encourage financial institutions to deploy more ATMs across Nigeria while ensuring appropriate fees for services rendered.

The removal of free withdrawals means customers who frequently use ATMs outside their bank’s network will face higher transaction costs. The additional surcharge for off-site ATMs may also push customers to rely more on their bank’s own machines or explore digital banking alternatives such as mobile and internet banking.

With the policy set to take effect in less than a month, banks are expected to update their systems and inform customers about the new charges. This move aligns with the CBN’s broader push toward a cashless economy, reinforcing its recent financial sector reforms aimed at promoting digital transactions.

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