By Abigail Philip David
The Central Bank of Nigeria (CBN) has scrapped the three free monthly withdrawals previously granted to customers using ATMs of other banks.
In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to enforce new ATM withdrawal charges starting March 1, 2025. This means customers will now be charged for every withdrawal made from an ATM that does not belong to their bank.
The revised 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 John Onojah, Acting Director of the Financial Policy and Regulation Department, states that the new policy aims to accelerate ATM deployment nationwide while ensuring banks apply appropriate service fees.
Key Changes in ATM Charges:
– Withdrawals from a customer’s own bank’s ATM remain free.
– Using another bank’s ATM will now attract a fee of N100 per N20,000 withdrawal within bank premises.
– Withdrawals at off-site ATMs will attract an additional surcharge of up to N500, which will be credited to the ATM operator.
– International ATM withdrawals will be charged at rates set by the international acquirer.
According to the CBN, this policy revision responds to rising costs and the need to improve ATM service efficiency. The directive aligns with the bank’s broader efforts to promote cashless transactions and encourage digital banking adoption.
CBN Cracks Down on Non-Dispensing ATMs
The policy shift follows recent sanctions imposed on nine Deposit Money Banks for failing to ensure cash availability in their ATMs during the festive season. The CBN fined each of the banks N150 million, totaling N1.35 billion, for non-compliance with cash distribution regulations.
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 will be directly debited from the banks’ accounts with the CBN.
With the new ATM charges set to take effect on March 1, 2025, customers may need to adjust their banking habits to minimize additional fees, potentially shifting towards mobile banking and digital transactions.
