The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly withdrawals previously allowed for bank customers using other banks’ ATMs. This means customers will now be charged for every withdrawal they make from an ATM that does not belong to their bank.
The new directive was detailed in a circular dated February 10, 2025, and signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN. The new charges will take effect from March 1, 2025.
The policy change affects the guidelines outlined in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020). The CBN notes that this decision is aimed at improving the efficiency of ATM services while ensuring that financial institutions apply appropriate charges for the service.
The circular states, “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.”
Under the new rule, withdrawals made from a customer’s own bank’s ATM will remain free. However, using another bank’s ATM will now come with a charge of N100 per N20,000 withdrawal when using ATMs located within bank premises.
For ATMs located outside bank premises, customers will face an additional surcharge of up to N500 per withdrawal. This surcharge will be received by the ATM owner and must be displayed at the withdrawal point.
Additionally, international ATM withdrawals will be charged based on the rates set by the international payment processors.
The CBN attributes the changes to increasing costs and the need to enhance the efficiency of ATM operations across the country. The review is also expected to encourage banks to deploy more ATMs nationwide.
With the new charges taking effect from March 1, 2025, bank customers who frequently use ATMs from other banks will likely face higher transaction costs.
