CBN announces new charges on ATM withdrawals

The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly withdrawals for customers using other banks’ Automated Teller Machines (ATMs).

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

The CBN announced this in a circular signed by its acting director of financial policy and regulation department, John Onojah, on Tuesday, February 11, 2025.

The apex bank said the revised charges will take effect from March 1, 2025.

The CBN attributed the review to rising costs and the need to enhance efficiency in ATM operations.

It noted that the review is in line with Section 10.7 of the CBN guide to charges by banks, other financial and non-bank financial institutions (2020).

The CBN said: “In response to rising costs and the need to improve efficiency of Automated Teller Machine (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. (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.

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“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

According to 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 further stated that international ATM withdrawals would be charged at the exact rate set by the international acquirer.

The apex bank urged all financial institutions to comply with the new directives ahead of the implementation date.

The Star