- The Central Bank of Nigeria has scrapped three free monthly withdrawals on other bank’s Automated Teller Machines
- There are charges for withdrawing from another bank’s ATM within the bank’s premises and off-site
- The directive is part of plans to promote cashless transactions
The Central Bank of Nigeria (CBN) has eliminated the three free monthly withdrawals previously allowed for customers using other banks’ Automated Teller Machines (ATMs).
This was contained in a circular dated February 10, 2025, and signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN.
The circular directed all banks and financial institutions to implement new ATM withdrawal charges from March 1, 2025.
The directive means that customers will pay for every withdrawal made from another bank’s ATM, while withdrawals made from a customer’s bank ATM will remain free.
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 directive is expected to accelerate the deployment of ATMs across the country and ensure that financial institutions apply appropriate charges for the service.
The circular 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.
“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.”
Applicable charges for using other bank’s ATM
The circular stated that customers using another bank’s ATM will be charged N100 per N20,000 withdrawal when using ATMs located within bank premises, while withdrawals made at off-site ATMs attract a charge of N100 per N20,000 withdrawal along with a surcharge of up to N500.
It said the surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.
For international ATM withdrawals, the CBN said such would be charged at the exact rate set by the international acquirer.
Efforts to promote cashless transactions
The CBN’s directive is in line with its efforts to promote cashless transactions and enhance digital or electronic banking, which surged to an all-time high of N1.07 quadrillion in 2024.
The cashless policy drive saw the CBN impose limits for daily and weekly cash withdrawals across all bank channels, effective on January 9, 2023.
The apex bank limits cash withdrawal by an individual to N500,000 a week, while corporate organisations have a N5 million withdrawal limit in a week.
In December 2024, the CBN limited the amount of cash to be withdrawn via Point-of-Sale (PoS) terminals to N100,000 daily and N500,000 weekly.
CBN fined banks against not dispensing cash through ATMs
The new policy on ATM charges comes shortly after the CBN warned of sanctions against any bank that refused to dispense cash via ATMs.
The directive aimed to ensure cash availability, especially during the festive season, prevent cash hoarding and halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes.
Already, banks have begun implementing the directive, even as the CBN fined nine banks N150 million each for failing to make cash available via their Automated Teller Machines (ATMs).
CBN to start fining banks over cash scarcity at ATMs
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country.
CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.
