The Central Bank of Nigeria (CBN) has eliminated the three free monthly ATM withdrawals previously allowed for customers using other banks' ATMs, effective March 1, 2025.
In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges, meaning customers will now pay for every withdrawal made from another bank’s ATM.
Key Changes in ATM Withdrawal Charges
- No More Free Withdrawals on Other Banks’ ATMs
- The existing three free Remote-On-Us withdrawals (using another bank’s ATM) will no longer apply.
- Customers will be charged from the first transaction on another bank’s ATM.
- New Withdrawal Fees
- Withdrawals from a customer’s bank ATM remain free.
- Withdrawals from another bank’s ATM (On-Us transactions) now attract a charge of ₦100 per ₦20,000 withdrawn.
- For off-site ATMs, an additional surcharge of up to ₦500 per transaction applies.
- International ATM withdrawals will be charged at the rate set by the international acquirer.
- Justification for the New Charges
- The CBN cited rising costs and the need to enhance ATM efficiency as reasons for the changes.
- The move is expected to accelerate ATM deployment and ensure that appropriate fees are applied by financial institutions.
Impact on Customers and Banking Habits
- Increased Costs for Frequent ATM Users: Bank customers who regularly withdraw cash from other banks’ ATMs will incur higher costs.
- Encouragement of Digital Banking: The new structure could push customers towards mobile banking, online transfers, and cashless transactions.
- Off-Site ATM Fees May Reduce Usage: The introduction of surcharges on off-site ATMs may discourage customers from using such locations.
CBN’s Enforcement of ATM Cash Availability
This review follows recent warnings from the CBN about ensuring ATMs dispense cash. The apex bank recently sanctioned nine banks with fines totaling ₦1.35 billion for failing to keep their ATMs stocked during the festive season.
Each of the banks was fined ₦150 million, with penalties deducted directly from their CBN accounts. The affected banks include:
- Fidelity Bank Plc
- First Bank Plc
- Keystone Bank Plc
- Union Bank Plc
- Globus Bank Plc
- Providus Bank Plc
- Zenith Bank Plc
- United Bank for Africa Plc
- Sterling Bank Plc
Implementation Date
The new ATM charges will take effect from March 1, 2025, as all banks and financial institutions are required to comply with the revised fee structure.
