Starting March 1, 2025, Nigerians will no longer enjoy free withdrawals from ATMs of other banks, following a new directive from the Central Bank of Nigeria (CBN).
Previously, bank customers were allowed three free withdrawals per month from other banks’ ATMs. However, in a circular dated February 10, 2025, the CBN announced that these free transactions have been scrapped.
What This Means for You
Under the new policy:
- Withdrawals from your own bank’s ATM remain free.
- Using another bank’s ATM will now attract a ₦100 charge per ₦20,000 withdrawal for ATMs within bank premises.
- Withdrawals from off-site ATMs (not located inside banks) will also attract the same ₦100 charge plus an additional surcharge of up to ₦500.
- International ATM withdrawals will now be charged at rates determined by the foreign financial institution handling the transaction.
Why the Change?
The CBN stated that the decision was driven by rising operational costs and the need to improve ATM services. The policy aims to encourage banks to deploy more ATMs nationwide while ensuring fair pricing for their use.
Impact on Customers
This move is expected to affect customers who rely heavily on other banks’ ATMs. With higher fees on off-site ATMs, many Nigerians may turn to mobile banking and digital payments to avoid extra charges.
The directive aligns with CBN’s broader push for a cashless economy, following recent penalties imposed on banks for failing to dispense cash through ATMs. Last year, nine commercial banks were fined a total of ₦1.35 billion for not ensuring cash availability at ATMs during the festive season.
What You Can Do
- Plan your withdrawals wisely to avoid unnecessary charges.
- Use your bank’s ATMs whenever possible.
- Consider mobile banking and other digital payment options.
With banks set to implement the new charges from March 1, customers will need to adjust their banking habits to minimize costs.