The Central Bank of Nigeria (CBN) has scrapped free ATM withdrawals for customers using other banks’ Automated Teller Machines (ATMs), effectively ending the previous policy that allowed three free withdrawals per month.
The CBN stated that the review was necessary due to rising costs and the need to improve ATM service efficiency.
According to the new directive, withdrawals made from a customer’s own bank ATM will remain free. However, for withdrawals from another bank’s ATM, customers will now be charged ₦100 per ₦20,000 withdrawal if the ATM is located within bank premises.
For off-site ATMs, a charge of ₦100 per ₦20,000 withdrawal will apply, along with a surcharge of up to ₦500.
The CBN clarified that the surcharge is an income for the ATM deployer or acquirer, and it must be disclosed to customers at the point of withdrawal.
For international ATM withdrawals, the charges will be based on the exact rate set by the international acquirer.
The CBN circular, dated February 10, 2025, reads in part:
“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
