The Central Bank of Nigeria (CBN) has discontinued free withdrawals for consumers using other banks’ Automated Teller Machines (ATMs). Remember, it was set at three free withdrawals each month. The CBN stated that the evaluation was necessary due to increased costs and the need to improve the effectiveness of ATM services.
According to the latest order, “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.” Withdrawals from a customer’s bank ATM will remain free. Customers who use another bank’s ATM will be charged N100 every N20,000 withdrawal if the ATM is located on bank premises.
However, withdrawals conducted at off-site ATMs would incur a fee of N100 every N20,000 transaction, plus a surcharge of up to N500. According to the CBN, the surcharge is a revenue earned by the ATM deployer or acquirer and must be reported at the point of withdrawal. However, international ATM withdrawals will be charged at the precise rate determined by the overseas acquirer.
The CBN circular, dated February 10, stated in part: “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 has reviewed the ATM transaction fees prescribed in Section 10.7 of the existing CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).”
“This assessment is expected to facilitate the deployment of ATMs and guarantee that financial institutions charge reasonable fees to users of the service. “Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
