The Central Bank of Nigeria (CBN) has scrapped the existing policy that allowed customers three free withdrawals per month when using another bank’s Automated Teller Machine (ATM).
In a new directive, the apex bank directed, “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.”
The decision, according to CBN, was prompted by rising costs and the need to enhance the efficiency of ATM services.
Under the revised policy, customers withdrawing cash from an ATM belonging to their own bank will continue to enjoy free transactions.
However, withdrawals from other banks’ ATMs will now attract a charge of N100 per N20,000 transaction if the ATM is located within bank premises.
For withdrawals at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.
CBN clarified that the surcharge serves as income for the ATM deployer or acquirer and must be disclosed at the point of withdrawal.
Also, international ATM withdrawals will be charged at rates set by the respective international acquirer.
A CBN circular dated February 10 further explained the rationale behind the changes.
“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 policy is set to take effect on March 1, 2025, marking a shift in Nigeria’s banking service charges.
