The Central Bank of Nigeria (CBN) has revised its ATM withdrawal policy, scrapping the previous provision that allowed customers to make three free withdrawals per month at other banks’ Automated Teller Machines (ATMs). The new directive, aimed at addressing rising costs and improving service efficiency, was outlined in a circular issued on February 10, 2025.
Key Changes in ATM Charges
Under the updated policy:
- No More Free Withdrawals at Other Banks: Customers will now be charged for every withdrawal made from ATMs of banks other than their own.
- Charges for Other Banks’ ATMs: A fee of ₦100 per ₦20,000 withdrawal will apply when using another bank’s ATM within its premises.
- Off-Site ATM Withdrawals: Customers withdrawing from ATMs located outside bank premises will also incur a ₦100 per ₦20,000 charge, along with an additional surcharge of up to ₦500, which will go to the ATM deployer or acquiring bank.
- International Withdrawals: Charges for international ATM withdrawals will be determined by the international acquirer at their set rates.
- Withdrawals at Own Bank’s ATMs Remain Free: Customers using ATMs owned by their respective banks will not be charged for withdrawals.
Rationale for the Policy Change
The CBN stated that the revision of ATM fees, which were last reviewed under the 2020 Guide to Charges, is necessary due to increasing operational costs and the need to enhance ATM deployment across the country.
“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,” the circular noted.
Impact on Customers and Banks
The policy shift means that customers who frequently use other banks’ ATMs will now incur higher costs for cash withdrawals. Financial analysts believe this move will encourage greater reliance on digital banking channels, such as mobile and online transfers, while also incentivizing banks to expand ATM services.
While some customers have expressed concern over the additional charges, banking experts argue that the policy could help sustain ATM operations, encourage investment in infrastructure, and enhance overall efficiency in the banking sector.
The new directive is expected to take effect immediately as banks begin implementing the revised charges across the country.
