The Central Bank of Nigeria (CBN) has announced a review of transaction fees for automated teller machines (ATMs) across the country.

The revision effectively eliminates the three free monthly withdrawals previously granted to customers using other banks’ ATMs.

This was disclosed in a circular signed by the Acting Director of the Financial Policy and Regulation Department, John Onojah, on Tuesday and applies to all banks and financial institutions operating in Nigeria and is set to take effect from March 1, 2025.

According to the apex bank, the review aims to address rising operational costs and enhance efficiency within the banking sector.

The most significant change is the complete removal of the previous policy that allowed bank customers three free monthly withdrawals on ATMs belonging to other banks. This means that every withdrawal on another bank’s ATM will now attract a charge.

The circular noted, “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 CBN cited rising costs and the need to enhance ATM efficiency as the primary reasons for the review.

The regulator expected this adjustment to accelerate the deployment of ATMs across Nigeria while ensuring that financial institutions appropriately charge customers for the service.

The circular read, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) 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).

https://leadership.ng/just-in-cbn-ends-free-atm-withdrawals-introduces-new-charges/