The Central Bank of Nigeria (CBN) has announced significant changes to Automated Teller Machine (ATM) transaction fees, effective March 1, 2025. The previous policy allowing customers three free monthly withdrawals from other banks’ ATMs has been discontinued. Under the new guidelines, withdrawals from a customer’s own bank’s ATM will remain free. However, using another bank’s ATM will incur a charge of ₦100 per ₦20,000 withdrawn. Additionally, for off-site ATMs—those located outside bank premises—a surcharge of up to ₦500 per ₦20,000 withdrawal will apply. International ATM withdrawals will be charged based on the exact amount imposed by the international acquirer.
The CBN cited rising operational costs and the need to enhance ATM efficiency as the primary reasons for these changes. The central bank anticipates that these adjustments will accelerate the deployment of ATMs across Nigeria and ensure that financial institutions apply appropriate charges for the service.
This policy shift has sparked reactions among consumers and financial institutions. While some acknowledge the necessity of the changes, others express concerns about the increased financial burden on customers, particularly those in rural areas with limited access to their own bank’s ATMs. The CBN has urged all financial institutions to comply with the new guidelines before the implementation date.
