CBN scraps free ATM withdrawals, introduces new N100 fee from March 1

In a move set to shake up banking transactions, the Central Bank of Nigeria (CBN) has announced the removal of the three free monthly withdrawals for customers using other banks’ ATMs, effective March 1, 2025.

The directive, outlined in a circular published on the CBN’s website, was addressed to all banks and financial institutions. John Onojah, Acting Director of the Financial Policy and Regulation Department, signed the document, attributing the decision to **rising operational costs and the need to enhance ATM service efficiency across the banking industry.

According to the circular, withdrawals made from a customer’s own bank will remain free. However, customers withdrawing from other banks’ ATMs will now face a N100 fee per N20,000 withdrawal. Additional fees apply to other financial institutions, with **charges of N100 plus a maximum surcharge of N500 per N20,000 withdrawn.

The CBN emphasized that all applicable surcharges must be transparently displayed at the ATM before transactions occur, ensuring customers are fully aware of the charges before proceeding.

Most significantly, the previous allowance of three free interbank ATM withdrawals per month has been completely scrapped. This change, outlined in Section 10.6.2 of the 2020 CBN Guide to Charges, marks a shift in Nigeria’s banking landscape and will likely influence customer banking habits.

With these revised charges, the CBN aims to accelerate ATM deployment while ensuring financial institutions apply fair and standardized fees.

However, for millions of Nigerians who rely on ATMs for daily transactions, this development signals the end of free interbank withdrawals and the start of a new era of banking costs.