CUSTOMERS TO PAY FOR WITHDRAWAL FROM ANOTHER BANK'S ATM

Anthony Ekpo Bassey 

Customers using other bank's ATM will henceforth, pay withdrawal charges as the Central Bank of Nigeria (CBN) has scrapped free Automated Teller Machine (ATM) withdrawals, which previously allowed customers to make withdrawals from other banks's ATMs without charges. 

This was disclosed in a circular released and signed by John Onojah, Acting Director of the Financial Policy and Regulation Department at the Central Bank of Nigeria today, directing all banks and financial institutions to implement new ATM withdrawal charges with effect from March 1, 2025. 

The circular states that: "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." It further states that: "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 fee prescribed in Section 10.7 of the extant CBN Guide to charges by banks, other financial and non-bank financial institutions, 2020. 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."

This implies that customers who use another bank's ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises. Then, for withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500. The apex bank added that international ATM withdrawals would be charged at the exact rate set by the international acquirer.