The Central Bank of Nigeria (CBN) has announced that customers will no longer enjoy free withdrawals when using ATMs of other banks. Previously, customers were allowed three free withdrawals per month.
CBN explained that the decision was made because of rising costs and the need to improve ATM services.
According to the new rule, the three free monthly withdrawals for customers using another bank’s ATM will no longer be available. However, withdrawals from a customer’s own bank ATM will still be free.
Customers withdrawing money from another bank’s ATM will now pay N100 for every N20,000 withdrawal if the ATM is inside a bank. If the ATM is outside a bank, there will be an extra surcharge of up to N500.
CBN stated that the surcharge will go to the ATM owner and must be clearly shown before withdrawal.
For international ATM withdrawals, charges will be based on the exact fee set by the international operator.
“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,” the CBN said in a circular dated February 10.
The new charges will take effect from March 1, 2025.
