CBN Ends Free ATM Withdrawals for Customers Using Other Banks’ Machines

 The Central Bank of Nigeria (CBN) has announced an end to free ATM withdrawals for customers using the ATMs of other banks, implementing a new charge of ₦100 per every ₦20,000 withdrawn. This was disclosed in a circular issued on February 10, 2025, by the apex bank’s Acting Director of Financial Policy and Regulation Department, John Onojah.

The directive, which takes effect from March 1, 2025, eliminates the previous provision that allowed bank customers three free withdrawals per month when using other banks’ ATMs. Now, every transaction at another bank’s ATM will incur a charge.

Additionally, the CBN introduced a higher surcharge for withdrawals made from off-site ATMs—machines located outside bank premises, such as those in shopping malls, eateries, and other public areas. For these withdrawals, customers of other banks will now pay a surcharge of up to ₦500 per ₦20,000 in addition to the standard ₦100 fee.

According to the CBN, the changes are necessitated by rising operational costs and the need to enhance the efficiency of ATM services across the country. The regulator believes the revised charges will encourage banks to expand ATM deployment, improve service quality, and ensure cost recovery for financial institutions offering these services.

While the move has sparked concerns among consumers over increased banking costs, financial experts suggest it could drive greater adoption of digital banking and alternative payment channels such as mobile banking and point-of-sale (POS) transactions.