Nigeria’s CBN Eliminates Free ATM Withdrawals For Customers Using Other Banks’ Machines
The Central Bank of Nigeria (CBN) has announced a major revision to its Automated Teller Machine (ATM) transaction fees, scrapping the three free monthly withdrawals previously granted to customers using ATMs of other banks.
Outlined in a circular dated February 10, 2025, the directive applies to all banks and financial institutions in Nigeria and will take effect from March 1, 2025. The circular, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, was published on the apex bank’s website on Tuesday.
Key Changes in ATM Fees:
- On-Us Transactions (Same Bank’s ATM): Withdrawals from a customer’s own bank’s ATM remain free.
- Not-On-Us Transactions (Other Banks’ ATMs):
- On-site ATMs (within bank premises): N100 per N20,000 withdrawal.
- Off-site ATMs (outside bank premises): N100 per N20,000 withdrawal plus a surcharge of up to N500.
- International Withdrawals: Charges will align with the amount imposed by the international acquirer.
The most notable change is the removal of the three free withdrawals per month for customers using other banks’ ATMs, meaning every such transaction will now incur a fee.
CBN’s Justification for the Review
The CBN cited rising operational costs and the need to improve ATM efficiency as the primary reasons for the adjustment. The bank believes this move will encourage the deployment of more ATMs across Nigeria while ensuring financial institutions charge appropriately for the service.
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions,” the circular stated.
This decision aligns with the CBN’s broader strategy to promote digital banking and reduce reliance on cash transactions, reinforcing its ongoing financial sector reforms.
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