The Central Bank of Nigeria (CBN) has officially scrapped the policy of free withdrawals for customers using Automated Teller Machines (ATMs) from other banks, which was previously limited to three free transactions per month.
In a statement, the CBN explained that the move was necessary to address rising operational costs and improve the overall efficiency of ATM services.
As a result, the provision for “Remote-On-Us” transactions—when a customer uses an ATM not belonging to their own bank—has been removed.
Under the new directive, withdrawals made at an ATM belonging to a customer’s own bank will remain free.
However, for transactions made on another bank’s ATM, customers will now be charged N100 per N20,000 withdrawal if the ATM is located on the bank’s premises.
For off-site ATM withdrawals, the same N100 charge per N20,000 will apply, in addition to a potential surcharge of up to N500.
Read Also: CBN to suspend BDC licenses for violating new FX guidelines
The CBN clarified that the surcharge, which is an income for the ATM operator, must be disclosed to customers at the point of withdrawal.
International ATM withdrawals will follow a different rate, determined by the international acquirer.
The new policy aims to regulate the growing costs associated with ATM services while enhancing transparency in the withdrawal process.
The CBN circular, dated February 10, read in parts: “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“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.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
 has officially scrapped the policy of free withdrawals for customers using Automated Teller Machines (ATMs) from other banks, which was previously limited to three free transactions per month.){kind=link}