The Central Bank of Nigeria (CBN) has revised the monthly charge for Automated Teller Machine (ATM) withdrawals, removing the three free withdrawals before charging for ATM withdrawals when bank customers withdraw using other banks’ ATMs. This announcement was made in a circular dated 11th February 2025.
Per the circular, ATM withdrawals made using banks’ ATMs other than the issuing bank will now attract a fee of ₦100 (if the withdrawal is done within the banking premises) for withdrawals of ₦20,000 and above.
Where the withdrawal is done using the ATM of another bank outside the bank’s premises (a shopping mall for example), the transaction will attract a ₦100 charge with an additional up to ₦500 surcharge for withdrawals of ₦20,000 and above.
For international withdrawals, the charge will be based on the exact amount imposed by the international acquirer.
“Furthermore, 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,” the circular stressed.
The circular is effective from March 1st, 2025.
The back Story
The CBN has been on the toes of commercial banks, pushing them to ensure the availability of cash to their customers and ending naira scarcity.
In November 2024, it released a circular stating that banks are to ensure the availability of cash in their ATMs and for over-the-counter withdrawals. It promised to conduct follow-up unannounced checks to ensure that banks are following through on the directive.
In January 2025, the CBN penalised banks over the unavailability of cash at their ATMs for customers during the 2024 Christmas holiday season.
Recall that there’s been recent backlash with the scarcity of cash at ATMs. Instead, customers have to resort to Cash in Cash Out Merchants (CICO), where they pay a fee to withdraw a certain amount of cash. The recent fee increase seems like a prerequisite for banks to make ATMs readily available for users.
The big picture
The CBN has been devising means to ensure that naira notes circulated more effectively, reducing the need for POS and other bank agents.
This new directive hopes to push banks to make available more ATMs for their customers to ensure easy access to money and other ATM services.
While the new charges may affect bank customers in places where their bank’s ATMs are not available, increasing their withdrawal charges, it is hoped that banks will deploy more ATMs to areas where they currently are unavailable.
Bank customers may also have to rely on electronic banking options where the ATMs are unavailable. Here, they are still faced with transfer charges of ₦50 where they transfer ₦10,000 or more.