The Central Bank of Nigeria (CBN) has announced that, starting from March 1, it will eliminate the three free monthly withdrawal transactions for customers using Automated Teller Machines (ATMs) from other banks.
This was revealed in a circular released on Tuesday, which was posted on the CBN website and addressed to all banks and other financial institutions. The circular was signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department.
The CBN explained that the move was in response to increasing costs and aimed at improving the efficiency of ATM services across the banking sector.
“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 outlined in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide),” the circular stated.
The review is expected to speed up ATM deployment and ensure that appropriate charges are levied by financial institutions for their services.
From March 1, 2025, customers will no longer enjoy three free withdrawals from ATMs of other banks. Withdrawals made using another institution’s ATM will attract a charge of N100 for every N20,000 withdrawn. Other categories of fees for transactions from different financial institutions will also be subject to a N100 charge, plus a surcharge of up to N500 for every N20,000 withdrawal.
The circular also noted that surcharge categories would be disclosed to consumers at the point of withdrawal.
It further stated that the three free monthly withdrawals, as previously allowed under Section 10.6.2 of the CBN Guide, would no longer apply.
