CBN Stops Free ATM Withdrawals For Other Bank Customers

The Central Bank of Nigeria, CBN, has eliminated the three free monthly withdrawals previously allowed for customers using other banks’ATMs.

In a circular made by the apex bank, it directed all banks and financial institutions to implement new ATM withdrawal charges from March 1, 2025, which means that customers will pay for every withdrawal made from another bank’s ATM.

According to THE apex Bank, the review would affects the charges prescribed in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions.

The circular, signed by Acting Director of the Financial Policy and Regulation Department at the CBN, John Onojah, customers using another bank’s ATM will now be charged 100 Naira per 20,000 Naira withdrawal when using ATMs located within bank premises.

The circular read, “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.”

The new charges mean that bank customers who frequently use ATMs belonging to other banks will now incur higher costs.

The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.

With banks expected to implement the new structure from 1 March, customers may need to adjust their banking habits to avoid additional fees.

The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.

This review of ATM charges occurred after a warning to the banks by the CBN that any bank found not dispensing cash via ATMs would be sanctioned.

The CBN recently sanctioned nine Deposit Money Banks with fines totalling N1.35bn for failing to ensure cash availability via ATMs during the festive season.

Each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.