The Central Bank of Nigeria (CBN) has eliminated the provision that allowed customers to make three free withdrawals per month using other banks’ Automated Teller Machines (ATMs). This policy change was driven by increasing operational costs and the need to enhance ATM service efficiency. Under the new directive, customers will no longer be entitled to the previously allowed three free transactions when withdrawing cash from ATMs belonging to other banks.

Despite this adjustment, withdrawals from ATMs owned by a customer’s own bank will remain free. However, customers who use ATMs from other banks will now face charges. Specifically, for withdrawals at ATMs located within bank premises, users will be charged N100 for every N20,000 withdrawn. In contrast, if the ATM is in an off-site location, an additional surcharge of up to N500 may apply along with the N100 charge per N20,000 withdrawal.

The CBN emphasized that the surcharge is a form of income for the ATM deployer or acquirer and must be transparently displayed at the withdrawal point. For international ATM transactions, charges will be determined based on the rates set by the international acquiring institution.

This directive was outlined in a CBN circular dated February 10, which highlighted the increasing costs of maintaining ATM services and the need for efficiency improvements. The revision, part of an update to the existing CBN Guide to Charges for financial institutions, is expected to encourage the expansion of ATM services while ensuring that banks and other financial entities implement appropriate transaction fees. The new charges are set to take effect from March 1, 2025.