On February 10, 2025, the Central Bank of Nigeria announced a significant revision to Automated Teller Machine withdrawal charges, set to take effect from 1 March 2025.

In a circular reflecting the same date, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges from 1 March 2025.

This means customers will now pay for every withdrawal made from another bank’s ATM.

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 circular, signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, is expected to accelerate the deployment of ATMs across the country while ensuring that financial institutions apply appropriate charges for the service.

It 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.”

Under the new directive, withdrawals made from a customer’s bank ATM will remain free.

However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.

For withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.

The surcharge, which will be an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.

The CBN also stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.

The circular read, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine 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 1 March 2025.”
The introduction of additional surcharges on off-site ATMs could also lead to increased reliance on digital banking channels such as mobile apps and online transfers.

With banks expected to implement the new structure from 1 March, customers may need to adjust their banking habits to avoid additional fees.

The CBN’s directive aligns with ongoing efforts to promote cashless transactions, a policy that has seen increased regulatory attention in recent years.

This review of ATM charges follows a recent warning from the CBN that any bank found not dispensing cash via ATMs would be sanctioned.

The CBN recently sanctioned nine Deposit Money Banks with fines totalling N1.35bn for failing to ensure cash availability via ATMs during the festive season.

Each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.

The affected banks included Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

The fines, our correspondent confirmed, would be directly debited from the banks’ accounts with the CBN.

This policy change has sparked widespread discussion due to its potential impact on consumers and the broader Nigerian economy.

N100 charge for withdrawals below N20,000

The apex bank announced during the week that Nigerians withdrawing less than N20,000 from another bank’s ATM will still be charged a fee of N100 per transaction.

This was disclosed in an FAQ document published by the Central Bank of Nigeria on its website on Thursday, providing further details on the new directive.

Off-site ATMs, which are located outside bank premises, such as in shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.