By Emmanuel Kwada
The Central Bank of Nigeria (CBN) has announced the end of free ATM withdrawals for customers using machines of other banks, effective March 1, 2025. In a circular dated February 10, 2025, the apex bank directed all banks and financial institutions to implement new ATM withdrawal charges.
Under the new policy, customers will be charged N100 per N20,000 withdrawal when using an ATM of another bank within the bank’s premises. An additional surcharge of up to N500 may apply for off-site ATMs, which must be disclosed at the point of withdrawal. However, withdrawals from a customer’s own bank’s ATM will remain free.
The bank also warned that any financial institution failing to dispense cash via ATMs would face sanctions
The CBN cited rising costs and the need to improve ATM efficiency as reasons for the new policy. The bank also warned that any financial institution failing to dispense cash via ATMs would face sanctions. This review comes after the CBN fined nine commercial banks N1.35 billion for not ensuring cash availability during the festive season.
The introduction of these new charges is expected to increase costs for customers who frequently use other banks’ ATMs, potentially driving greater reliance on digital banking channels like mobile apps and online transfers.
