The Central Bank of Nigeria (CBN) has ended the three free monthly withdrawals from other banks’ ATMs and introduced a new fee structure following a review of ATM withdrawal charges by the banking regulator.
The revised charges, which take effect from March 1, 2025, are aimed at accelerating the deployment of ATMs and ensuring appropriate charges by financial institutions, the apex bank says.
In an official statement signed by John S. Onojah, Acting Director, Financial Policy and Regulation Department at the CBN, the banking regulator directed banks and other financial institutions to apply the following fees:
New ATM withdrawal charges
• Withdrawals from a customer’s own bank’s ATM (On-Us transactions) remain free.
• Withdrawals from other banks’ ATMs (Not-On-Us transactions) will now attract:
On-site ATMs: A charge of N100 per ₦20,000 withdrawal.
Off-site ATMs: A charge of N100 plus a surcharge of not more than ₦500 per ₦20,000 withdrawal.
The CBN clarified that “the surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.”
Removal of free withdrawals
Previously, under Section 10.6.2 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020), customers were allowed three free withdrawals per month from other banks’ ATMs.
However, according to the statement, “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.”
International withdrawals
For international ATM transactions, the CBN stated that banks will charge customers exactly what the international acquirer sets. “International Withdrawals (per transaction) whether debit/credit card: Cost Recovery – exact charge by international acquirer.”
Reason for review
The CBN says that the revised fee structure is aimed at ensuring fair and transparent charges while expanding ATM deployment nationwide.
According to the CBN, “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.”
Banks and financial institutions have been directed to implement the new charges starting March 1, 2025, in compliance with the updated guidelines.
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