The Central Bank of Nigeria has eliminated the three free monthly withdrawals previously allowed for customers using other banks’ ATMs. (ATM) transaction fees, effectively eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs. In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges from March 1, 2025.
Under the new directive, withdrawals made from a customer’s bank ATM will remain free. The review stated that the ATM transaction fees stipulated under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The most significant change is the complete removal of the previous policy that allowed bank customers three free monthly withdrawals on ATMs belonging to other banks. This means that every withdrawal on another bank’s ATM will now attract a charge.
The circular noted, “Furthermore, 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, customers using another bank’s ATM will now be charged N100 per N20, 000 withdrawal when using ATMs located within bank premises. For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.
The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal. The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.
The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations. The CBN recently sanctioned nine Deposit Money Banks with fines totaling N1.35bn for failing to ensure cash availability via ATMs during the festive season. Each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
Source: Galaxy TV
