The Central Bank of Nigeria (CBN) has scrapped the three free ATM withdrawals previously allowed for customers using other banks’ ATMs, effectively making all such transactions chargeable starting March 1, 2025.
In a circular dated February 10, 2025, the apex bank directed financial institutions to implement new withdrawal charges as part of a broader review of its banking fee guidelines. Under the new directive, customers will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises. For withdrawals at off-site ATMs, an additional surcharge of up to N500 may apply.
The circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, stated that the revision aims to accelerate ATM deployment across the country while ensuring that banks apply appropriate service fees. International ATM withdrawals will also be charged at rates set by international acquirers.
The CBN attributed the policy shift to rising operational costs and the need to enhance ATM service efficiency. The move is expected to push more customers toward digital banking alternatives, such as mobile apps and online transfers, to avoid additional fees.
The review follows recent regulatory actions by the CBN, including sanctions imposed on nine Deposit Money Banks, each fined N150 million—totaling N1.35 billion—for failing to ensure cash availability at ATMs during the festive season. The affected banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank.
With the new charges set to take effect in March, bank customers may need to rethink their withdrawal habits to minimize costs while adapting to Nigeria’s evolving cashless policy landscape.
