The Central Bank of Nigeria (CBN) has ended free withdrawals for customers using Automated Teller Machines (ATMs) of banks other than their own, stating that the new directive aims to accelerate ATM deployment across the country and improve service efficiency.
Previously, customers were entitled to three free withdrawals per month before charges were applied.
However, under the revised regulations, this benefit has been removed. While withdrawals from a customer’s own bank’s ATM will remain free, transactions at another bank’s ATM will now attract charges.
According to the directive, customers withdrawing cash from an ATM within bank premises will be charged ₦100 per ₦20,000 transaction. For withdrawals at off-site ATMs, the same ₦100 charge per ₦20,000 will apply, along with an additional surcharge of up to ₦500.
The CBN clarified that this surcharge serves as income for the ATM deployer or acquirer and must be disclosed at the withdrawal point.
International ATM withdrawals will continue to be charged at rates set by the international acquirer.
The directive, outlined in a CBN circular dated February 10, explains that the changes were driven by rising operational costs and the need to enhance ATM services in the banking sector. The CBN emphasized that this review is designed to encourage wider ATM deployment while ensuring that financial institutions implement fair and transparent charges.
Implementation of the new charges will take effect from March 1, 2025.
