The Central Bank of Nigeria (CBN) has scrapped the three free monthly withdrawals previously allowed for customers using ATMs of other banks, a move set to take effect from March 1, 2025.
According to a circular dated February 10, 2025, and signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, all banks and financial institutions must implement the revised ATM withdrawal charges.
Under the new policy, customers withdrawing cash from ATMs belonging to banks other than their own will now incur a charge of N100 per N20,000 transaction when using machines within bank premises. For off-site ATMs, the same N100 per N20,000 fee applies, but an additional surcharge of up to N500 may be imposed by the ATM operator.
The directive also impacts international ATM withdrawals, which will be charged at the prevailing rate set by international acquirers. However, withdrawals from a customer’s own bank’s ATMs will remain free.
The CBN stated that the review aligns with efforts to improve ATM service efficiency and encourage wider deployment of cash machines nationwide. It follows concerns over rising operational costs in the banking sector.
Additionally, the apex bank has recently intensified regulatory actions against financial institutions failing to ensure cash availability. In a separate enforcement move, nine commercial banks—including Fidelity Bank, First Bank, Zenith Bank, and UBA—were fined a total of N1.35 billion for failing to dispense cash at ATMs during the festive season.
With the new charges set to take effect, analysts predict a shift toward digital banking alternatives as customers seek to avoid higher ATM transaction costs.
