The Central Bank of Nigeria (CBN) has scrapped the longstanding policy of allowing three free withdrawals per month for customers using Automated Teller Machines (ATM) of banks other than their own. The change, effective immediately as per a circular dated February 10, marks a significant shift in the fee structure prescribed for ATM transactions across the country.
During a press briefing, a CBN spokesperson explained that the review was necessitated by the increasing costs associated with maintaining and deploying ATM nationwide. “Rising operational expenses have compelled us to revisit and revise the fee structure to ensure that ATM services remain sustainable and efficient,” the spokesperson noted.
Under the new directive, the previous concession—allowing three free monthly withdrawals for Remote-On-Us (i.e., customers using another bank’s ATM, also known as Not-On-Us consumers) under Section 10.6.2 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020—will no longer apply. Instead, customers who withdraw money from ATMs not operated by their own bank will incur a charge. Specifically, if the ATM is located within the premises of a bank, users will be charged N100 per N20,000 withdrawn. For transactions at off-site ATMs, an additional surcharge of up to N500 will be imposed on top of the N100 fee per N20,000 withdrawn.
Importantly, the circular emphasizes that all surcharges charged by the ATM deployer or acquirer must be clearly disclosed at the point of withdrawal, ensuring transparency and informed decision-making for consumers. Meanwhile, withdrawals made from an ATM operated by the customer’s own bank will continue to be free, maintaining an incentive for banks to encourage their clients to use in-house services.
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The change in fee structure is also viewed as part of the CBN’s broader strategy to position Nigerian banks for a $1 trillion economy, as noted in a related report by Cardoso. By tightening control over ATM service charges, the CBN aims to ensure that funds generated from these fees can be reinvested into modernizing and expanding the country’s ATM network. “When ATM service fees are adjusted appropriately, it creates a more level playing field for all banks, ensuring that the financial sector remains competitive and innovative,” the analyst added.
