CBN Introduces New ATM Withdrawal Charges Effective March 1, 2025

The Central Bank of Nigeria (CBN) has announced a revision of Automated Teller Machine (ATM) withdrawal charges, set to take effect from March 1, 2025. This policy change aims to address rising operational costs and enhance the efficiency of ATM services across the banking sector.

Key Highlights of the New ATM Withdrawal Charges:

Download Now

Get Ready for the Federal Inland Revenue (FIRS) Aptitude Test!
Access Our Exclusive Past Questions & Answers PDF Below!

Download Federal Inland Revenue Recruitment Test 2025 PDF Past Questions and Answers (PDF File)

• Withdrawals from Own Bank’s ATMs (On-Us Transactions): Customers will continue to enjoy free withdrawals when using ATMs operated by their own banks.
• Withdrawals from Other Banks’ ATMs (Not-On-Us Transactions):
  • On-Site ATMs: A fee of ₦100 will be charged per ₦20,000 withdrawal.
  • Off-Site ATMs: A base charge of ₦100 per ₦20,000 withdrawal, plus an additional surcharge of up to ₦500 per transaction, will be applied. This means withdrawing ₦20,000 from an off-site ATM of another bank could cost up to ₦600 per transaction.
• International Withdrawals: Charges will be based on cost recovery, meaning the exact fee applied by the international acquirer will be passed to the customer.

Additionally, the previous allowance of three free monthly withdrawals from other banks’ ATMs has been eliminated. All interbank ATM withdrawals will now attract the stipulated charges from the first transaction each month.

CBN Governor, Olayemi Cardoso, stated that this policy aims to encourage banks to improve cash availability at ATMs and expand their ATM networks. He emphasized that while withdrawals from one’s own bank’s ATM remain free, the new charges on interbank withdrawals are designed to enhance financial efficiency and discourage exploitative cash withdrawal services.

The CBN has also clarified that banks are required to allow customers to withdraw up to ₦20,000 per transaction. Any bank that compels a customer with sufficient funds to withdraw less than this amount per transaction would be contravening the regulation and will face appropriate sanctions. Customers are encouraged to report such violations to the CBN’s Consumer Protection Department via cpd@cbn.gov.ng.

This policy shift aligns with the CBN’s broader strategy to promote digital banking and reduce dependence on cash transactions, thereby fostering a more efficient and inclusive financial system.