Effective today, March 1, 2025, Nigerian banks have introduced new charges for Automated Teller Machine (ATM) withdrawals, following a directive from the Central Bank of Nigeria (CBN). Under the revised policy, customers withdrawing cash from ATMs at their own banks will continue to enjoy free transactions. However, those using ATMs of other banks will now be charged a fee of N100 per withdrawal, alongside an additional surcharge of up to N450 for transactions exceeding N20,000.
The new policy also introduces a N100 fee for withdrawals made at on-site ATMs—machines located within bank branches. This means that even if customers withdraw from their own bank’s ATM but do so at a branch location, they will still incur charges. Additionally, international ATM withdrawals will now attract fees based on the exact charges imposed by foreign service providers, eliminating any prior subsidies.
Another significant change is the removal of the three free withdrawals previously allowed on ATMs of other banks. Before this update, customers could withdraw cash from any bank’s ATM three times a month without incurring charges, but this exemption has now been discontinued. The CBN argues that this adjustment is necessary to enhance the efficiency of ATMs and encourage banks to deploy more machines nationwide.
While the new charges have sparked concerns among customers, particularly amid rising costs of banking services, financial experts suggest that it could lead to increased use of digital payment options. With cashless transactions becoming more widespread, many analysts believe this policy may push more Nigerians toward mobile banking and other electronic payment methods.
