The Central Bank of Nigeria (CBN) has officially discontinued the policy allowing three free withdrawals per month for customers using Automated Teller Machines (ATMs) outside their banks.

This change comes in response to rising operational costs and aims to enhance the efficiency of ATM services across the country.

As outlined in a recent CBN directive, the allowance for Remote-On-Us (transactions at other banks’ ATMs) under Section 10.6.2 of the CBN Guide will no longer be applicable. However, customers can still enjoy free withdrawals from their own bank’s ATMs.

New Fee Structure

Starting March 1, 2025, customers using ATMs from different banks will incur a fee of N100 for every N20,000 withdrawn if the ATM is located on the premises of the bank. For transactions at off-site ATMs, users will face a similar charge of N100 per N20,000, in addition to a surcharge of up to N500. This surcharge, which is considered income for the ATM deployer or acquirer, must be communicated at the point of transaction.

Additionally, international ATM withdrawals will be charged according to the rates set by the respective international acquirers.

In a circular dated February 10, the CBN stated, “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 extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020.”

The central bank anticipates that these adjustments will facilitate the broader deployment of ATMs and ensure that reasonable charges are applied to consumers who use these services.