The Central Bank of Nigeria (CBN) has foisted new charges of N600 on N20,000 withdrawals, scrapping the three free monthly withdrawals previously granted to banks’ customers using other banks’ Automated Teller Machines (ATMs).
In a circular dated February 10, 2025, and signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, the apex bank announced that the new policy applies to all banks and financial institutions in Nigeria and will take effect from March 1, 2025.
According to the CBN, the decision to eliminate free withdrawals is driven by rising operational costs and the need to enhance ATM efficiency.
“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” the circular stated.
Under the revised guidelines, withdrawals from an account holder’s bank ATM (‘On-Us’ transactions) will remain free of charge. However, withdrawals from other banks’ ATMs (‘Not-On-Us’ transactions) will now attract the following charges on-site ATMs (within bank premises): N100 per N20,000 withdrawal and Off-site ATMs (outside bank premises): N100 per N20,000 withdrawal plus an additional surcharge of up to N500.
The apex bank clarified that the surcharge would serve as revenue for the ATM deployer or acquirer and would be disclosed to customers at the point of withdrawal.
For withdrawals on international ATMs, customers will be charged based on the fees imposed by the international acquirer.
The review of ATM charges comes when Point of Sale (PoS) terminals have gained significant traction in Nigeria’s financial sector. Data from the first half of 2024 showed a decline in active ATMs to 16,714, down 3.82 per cent from 17,377 recorded in the second half of 2023.
Meanwhile, PoS terminals surged to 5.56 million by the end of 2024, marking a 127.07 per cent increase from the previous year.
With this adjustment, the CBN expects banks to accelerate ATM deployment while ensuring that charges align with service delivery costs
