BREAKING: CBN scraps free ATM withdrawals, introduces new charges

The Central Bank of Nigeria (CBN) has scrapped the three free ATM withdrawals customers used to enjoy when using other banks’ ATMs.

In a circular dated February 10, 2025, the apex bank directed all financial institutions to begin implementing new withdrawal charges from March 1, 2025. This means that customers will now have to pay for every withdrawal made from another bank’s ATM.

The reviewed charges affect Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).

The circular, signed by the Acting Director of the Financial Policy and Regulation Department, John Onojah, explained that the decision aims to improve ATM deployment across Nigeria while ensuring banks apply appropriate charges.

It stated, “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.”

New Charges

According to the directive, withdrawals from a customer’s own bank ATM will remain free. However, those using another bank’s ATM will now be charged:

N100 per N20,000 withdrawal at bank premises.

N100 per N20,000 withdrawal at off-site ATMs, with an additional surcharge of up to N500.

The surcharge, which will serve as income for the ATM deployer, must be clearly displayed before the transaction.

For international ATM withdrawals, charges will be determined by the international acquirer.

The CBN attributed the review to rising operational costs and the need for more efficient ATM services.

Policy Impact

With these new charges, customers who frequently withdraw from other banks’ ATMs will face increased costs. This could push more people towards digital banking services like mobile apps and online transfers.

The directive aligns with the CBN’s cashless policy, which has been a major focus in recent years.

Previous Sanctions on Banks

This review comes shortly after the CBN sanctioned nine banks with fines totaling N1.35 billion for failing to ensure cash availability at ATMs during the festive period. Each bank was fined N150 million following spot checks that revealed non-compliance.

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

The fines were directly deducted from the banks’ accounts with the CBN.

With the new charges set to take effect from March 1, 2025, customers will need to adjust their withdrawal habits to avoid extra costs.