No more free withdrawals when using another bank’s ATM from March 1

The Central Bank of Nigeria (CBN) has eliminated the three free monthly withdrawals previously granted to customers using other banks’ automated teller machines (ATMs).

This was revealed in a circular signed by John S. Onojah, ag. Director, Financial Policy and Regulation Department, CBN, and dated February 10, 2025. The circular applies to all banks and financial institutions operating in Nigeria and will take effect on March 1, 2025. According to the apex bank, removing these free transfers is in response to rising costs and the need to improve the efficiency of ATMs.

“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” the CBN stated.

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The apex bank highlighted that ATM transaction fees ‘On-Us’ (same bank’s ATM) will continue to attract no charge. However, ‘Not-On-Us’ transactions (other banks’ ATMs) for on-site ATMs (within bank premises) will attract a fee of N100 per N20,000 withdrawal, and off-site ATMs (outside bank premises) will attract a fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500.

The CBN explained that the surcharge is the ATM deployer/acquirer’s income and shall be disclosed to the consumer at the point of withdrawal.

For international ATM withdrawals, the charge will be based on the exact amount imposed by the international acquirer. The CBN noted that this review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.

Point of Sales (PoS) terminals have become much more critical to financial services than Automated Teller Machines in recent years. The number of active ATMs stood at 16,714 in the first half of 2024, a 3.82 percent decrease from 17,377 in the second half of 2023, as Nigerians continue to embrace Point of Sale terminals which rose to 5.56 million by the end of 2024, a 127.07 percent increase from 2023.