By Ayomide Otitoju
The Central Bank of Nigeria (CBN) has announced the introduction of new charges for customers withdrawing cash from Automated Teller Machines (ATMs) of banks other than their own, effectively ending the three free withdrawals previously allowed.
The directive was contained in a circular dated February 10, 2025, and signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department. The new charges will take effect from March 1, 2025.
New ATM Withdrawal Charges
According to the circular, customers withdrawing from their own bank’s ATMs will continue to enjoy free withdrawals. However, those using another bank’s ATM will now incur a charge of ₦100 per ₦20,000 withdrawal.
For off-site ATMs—machines located outside bank premises, such as at shopping malls, restaurants, and public places—customers withdrawing from other banks’ ATMs will be required to pay a ₦500 surcharge per ₦20,000 withdrawal, in addition to the statutory ₦100 charge.
Rationale Behind the New Charges
The CBN attributed the revised charges to rising operational costs and the need to enhance ATM service efficiency across the country.
“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 apex bank stated.
The policy shift comes amid concerns over banking service costs and accessibility, with the CBN emphasizing the need to balance affordability with improved service delivery.
