In an impactful shift, the Central Bank of Nigeria (CBN) has announced the end of the three complimentary monthly withdrawals that customers enjoyed when using ATMs of different banks. This new policy, laid out in a circular dated February 10, 2025, mandates all banks and financial institutions to enforce fresh ATM withdrawal charges starting March 1, 2025.
From now on, every time you use another bank’s ATM, you can expect a fee! The CBN’s decision aims to encourage the expansion of ATMs across Nigeria while ensuring fair charges for these services.
The circular, signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department at the CBN, states: “The three free monthly withdrawals allowed for Remote-On-Us (customers of other banks) in Nigeria shall no longer apply.” However, don’t worry—withdrawals from your own bank’s ATM will still be free.
For those using ATMs located within bank premises, a fee of N100 will be charged for every N20,000 withdrawal. When it comes to off-site ATMs, the charges will be the same, plus a surcharge that could reach up to N500. This surcharge will be a revenue stream for the ATM provider and must be clearly stated at the time of withdrawal. International ATM withdrawals will incur charges in line with the rates set by international acquirers.
This revision comes “in light of increasing costs and the need for more efficient ATM services,” the circular reads. The CBN emphasised that these adjustments are designed to boost the deployment of ATMs while ensuring that financial institutions apply reasonable fees for their services.
With these new charges, frequent users of other banks’ ATMs may feel a pinch in their wallets. The additional surcharges, particularly for off-site ATMs, are likely to push customers toward embracing digital banking solutions like mobile apps and online transfers.
As banks gear up to implement this change on March 1, customers may want to rethink their banking habits to steer clear of those pesky extra fees. The CBN’s directive comes as part of its broader initiative to promote cashless transactions, a goal that has gained momentum in recent years.
This adjustment in ATM fees follows the CBN’s stern warning to banks regarding cash availability at ATMs, stating non-compliance could lead to sanctions. Recently, nine Deposit Money Banks faced penalties totaling N1.35 billion after failing to maintain cash availability during the festive season, with each bank slapped with a fine of N150 million.
The list of affected banks includes well-known names like 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, and Sterling Bank Plc. These fines will be directly deducted from the banks’ accounts with the CBN.
As customers and banks navigate these changes, it will be fascinating to see how habits evolve in this new landscape of ATM usage and fees.
