Nigeria’s Central Bank has scrapped the three free monthly withdrawals previously allowed for customers using other banks’ ATMs. Starting March 1, 2025, customers will be charged for every withdrawal made from another bank’s ATM.
According to a circular issued on February 10, 2025, the Central Bank directed all banks and financial institutions to implement new ATM withdrawal charges. The review affects the charges prescribed in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
Here’s how the new charges will work:
- On-site ATM withdrawals: Customers using another bank’s ATM will be charged ₦100 per ₦20,000 withdrawal.
- Off-site ATM withdrawals: A charge of ₦100 per ₦20,000 withdrawal will apply, along with a surcharge of up to ₦500.
- International ATM withdrawals: Charges will be at the exact rate set by the international acquirer.
The Central Bank attributed the review to rising costs and the need to enhance efficiency in ATM operations. This move is expected to accelerate the deployment of ATMs across the country and ensure that financial institutions apply appropriate charges for the service.
The new charges may lead to increased costs for bank customers who frequently use ATMs belonging to other banks. Additionally, the introduction of surcharges on off-site ATMs could push more users towards digital banking channels.
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