The Central Bank of Nigeria (CBN) has scrapped the policy allowing bank customers to make three free ATM withdrawals per month at machines operated by other banks.
From March 1, 2025, all ATM transactions conducted on third-party machines will now incur charges.
A directive issued by the apex bank, signed by John Onojah, Acting Director of Financial Policy and Regulation, outlines the revised withdrawal fees.
Under the new structure, customers using another bank’s ATM will be charged N100 for every N20,000 withdrawn. Off-site ATMs—machines located outside bank premises—will carry an extra surcharge of up to N500.
The CBN justified the decision by citing increased operational costs and the need for a more efficient ATM network.
“This adjustment is designed to enhance ATM availability and ensure financial institutions apply fair charges for the service,” the circular explained.
Additionally, international withdrawals will now be subject to charges set by foreign transaction processors, removing any previous exemptions.
The updated fee policy could push more customers toward digital banking solutions like mobile and online transfers to avoid higher transaction costs.
This move follows recent penalties imposed by the CBN on nine commercial banks, including Fidelity Bank, First Bank, and Zenith Bank, for failing to ensure ATMs were stocked with cash during the holiday season.
Each bank was fined N150 million, bringing total penalties to N1.35 billion, which was directly debited from their accounts.
With banks expected to enforce these new charges from March, customers may need to reconsider how they handle cash withdrawals to minimise extra costs.
