The Central Bank of Nigeria (CBN) has revoked its previous policy, which allowed customers to make up to three free withdrawals each month using ATMs owned by other banks.
In justifying this policy revision, the Central Bank of Nigeria (CBN) highlighted the increasing costs associated with maintaining and operating ATMs, emphasizing the need to find ways to improve the efficiency of these services for customers.
According to the new directive, “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.”Notably, customers will continue to enjoy free ATM withdrawals when using their own bank’s ATMs. However, if they choose to withdraw from an ATM operated by a different bank, they will be charged a fee of N100 for every N20,000 withdrawn, provided the ATM is located on the premises of the bank.”
Further to the fees levied for ATM withdrawals conducted at different bank ATMs within the premises of the bank, Withdrawals conducted at off-site ATMs will also incur a fee of N100 for every N20,000 withdrawn, coupled with a surcharge of up to N500 per transaction.
CBN also mandated that this surcharge, which serves as additional income for the bank providing the ATM, must be clearly disclosed to the customer at the point of withdrawal.
However, international ATM withdrawals would be charged at the exact rate set by the international acquirer.
The CBN circular, issued on February 10, clearly states, “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.”
