By Blessing Obi
Nigerian bank customers will now have to pay a fee whenever they withdraw money from an Automated Teller Machine (ATM) that does not belong to their bank, following a new directive by the Central Bank of Nigeria (CBN).
The apex bank, in a circular dated February 10, 2025, announced that the three free withdrawals previously allowed for customers using ATMs of other banks have been discontinued. Henceforth, customers will be charged ₦100 for every ₦20,000 withdrawal made at another bank’s ATM.
The directive, signed by John Onojah, the acting Director of the Financial Policy and Regulation Department, was addressed to all banks and financial institutions in the country.
The CBN’s new policy also introduced higher charges for off-site ATMs, which are cash machines located outside bank premises, such as those in shopping malls, restaurants, and other public spaces.
For these off-site ATMs, customers withdrawing from another bank’s ATM will incur an extra charge of up to ₦500 per ₦20,000, in addition to the standard ₦100 withdrawal fee.
According to the CBN, the new charges are aimed at covering the rising costs of ATM operations and ensuring more efficient cash withdrawal services.
“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,” the circular stated.
This decision marks a shift from the previous policy, which allowed customers three free ATM withdrawals at other banks before charges applied. With this change, bank users will now have to reconsider their cash withdrawal habits to avoid additional costs.
While withdrawals at ATMs belonging to a customer’s own bank remain free, those who frequently rely on other banks’ ATMs may need to plan their withdrawals more strategically or embrace alternative payment methods such as mobile banking, USSD transfers, or point-of-sale (POS) transactions.
The move has sparked concerns among Nigerians, many of whom are already grappling with economic challenges. Some financial analysts argue that the policy could further burden customers, especially in rural areas where ATM options are limited. Others, however, believe it may encourage the expansion of ATM services by banks seeking to avoid losing customers to competitors.
As the new directive takes effect, customers will now have to weigh their options and adapt to a banking landscape where every ATM withdrawal could come with an extra cost.
