CBN Scraps 3 Free Monthly ATM Withdrawals For Customers

The Central Bank of Nigeria (CBN) has revised its Automated Teller Machine (ATM) transaction fee policy, eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
This directive, outlined in a circular dated February 10, 2025, applies to all banks and financial institutions in Nigeria and will take effect from March 1, 2025. The circular, signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, was published on the CBN’s website on Tuesday.
Under the new policy, the CBN has adjusted ATM transaction fees as stipulated in Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals. However, withdrawals from other banks’ ATMs will now attract a fee of N100 per N20,000 for on-site ATMs within bank premises. Off-site ATMs located outside bank premises will incur the same N100 per N20,000 charge, along with an additional surcharge of up to N500. For international withdrawals, charges will depend on the fees imposed by the international acquirer.
The removal of the three free monthly withdrawals marks a significant shift in policy, meaning customers will now pay charges for every withdrawal made on another bank’s ATM.
The CBN attributed the decision to rising operational costs and the need to improve ATM efficiency. It expects the new fee structure to encourage more ATM deployments nationwide while ensuring financial institutions recover service costs appropriately.
“In response to rising costs and the need to improve the efficiency of 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). 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 circular stated.
This policy aligns with the CBN’s broader strategy to promote digital banking and reduce cash-based transactions. With the new charges taking effect from March 1, 2025, customers who rely on ATMs outside their bank’s network will see an increase in withdrawal costs. The additional surcharges on off-site ATMs may also encourage more customers to use their own bank’s ATMs or explore digital banking alternatives such as mobile and internet banking. Financial institutions are expected to update their systems and notify customers about the revised charges before implementation.