CBN Ends Free ATM Withdrawals For Non-Customers

The Central Bank of Nigeria, CBN, has removed the three free monthly withdrawals that were previously permitted to clients utilizing ATMs operated by other banks.

In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges from March 1, 2025.

This means customers will now pay for every withdrawal made from another bank’s ATM.

The review affects the charges prescribed in 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 at the CBN, is expected to accelerate the deployment of ATMs across the country while ensuring that financial institutions apply appropriate charges for the service.

It read, “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.”

Under the new directive, withdrawals made from a customer’s bank ATM will remain free.

However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.

For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.

The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.

The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.

The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.

The circular read, “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“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. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

The new charges mean that bank customers who frequently use ATMs belonging to other banks will now incur higher costs.

The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.

With banks expected to implement the new structure from 1 March, customers may need to adjust their banking habits to avoid additional fees.

The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.

This review of ATM charges occurred after a warning to the banks by the CBN that any bank found not dispensing cash via ATMs would be sanctioned.

The CBN recently sanctioned nine Deposit Money Banks with fines totaling N1.35bn for failing to ensure cash availability via ATMs during the festive season.

Each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.