From 1st March 2025, the Central Bank of Nigeria (CBN) will no longer allow customers to make three free ATM withdrawals per month from ATMs of banks other than their own. This decision, outlined in a circular issued on 10th February 2025, applies to all financial institutions across Nigeria.
Under the new guidelines, withdrawing funds from an ATM owned by the customer’s bank will remain free of charge. However, using an ATM from another bank will now incur a fee. For withdrawals from ATMs located within bank branches, customers will be charged N100 for every N20,000 withdrawn. If the ATM is located off-site, outside the bank’s premises, the fee will rise to N100, plus an additional surcharge of up to N500.
International withdrawals will be subject to fees determined by the foreign bank or financial institution involved in the transaction.
This policy change, endorsed by John S. Onojah, Acting Director of the CBN’s Financial Policy and Regulation Department, forms part of a wider effort to improve ATM efficiency and manage rising operational costs in the banking sector. The CBN seeks to encourage banks to expand their ATM networks across Nigeria, while ensuring that customers pay fair charges for the services they use.
As a result of these changes, customers who frequently use ATMs outside of their bank’s network may face higher transaction costs. The additional charges for off-site ATM withdrawals could prompt customers to rely more on their bank’s ATMs or turn to alternative digital banking options such as mobile and internet banking.
With the policy set to take effect shortly, banks are expected to update their systems and inform customers of the new charges. This move is also in line with the CBN’s ongoing push towards a cashless society, supporting recent reforms that promote digital financial transactions.
