The Central Bank of Nigeria (CBN) has scrapped free withdrawals for off-network ATM transactions, effective March 1, 2025. Bank users now have to pay N100 per N20,000 at on-site ATMS, plus an additional surcharge of not more than to N500 per N20,000 for transactions at off-site ATMs.

This revision, disclosed in a circular issued on Monday (FPR/DIR/GEN/CIR/001/002) changes the previous adjustments made in 2019 when the CBN reduced the withdrawal fees from N65 to N35.

The circular states that the review was undertaken “in response to rising costs and the need to improve (the) efficiency of Automated Teller Machine (ATM) services in the banking industry”.

Under the updated rules, on-us transactions — that is, withdrawals made at the ATM of a customer’s own bank — will continue to be free.

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In contrast, every withdrawal from an off-network ATM will now incur the N100 fee plus the extra surcharge. The circular notes that “the surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer”.

ATM FEE CIRCULARDownload

In addition, for international transactions using debit or credit cards, banks will apply a cost-recovery charge equal to the exact fee imposed by the international acquirer.

Most importantly, 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”.

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John S. Onojah, Acting Director of the Financial Policy and Regulation Department at the CBN, explained:

“This review is expected to accelerate the deployment of ATMs across the country and ensure that appropriate charges are applied by financial institutions to consumers of the service

He added, “While our previous adjustments in 2019, which reduced ATM withdrawal fees from N65 to N35 and allowed three free monthly withdrawals for off-network transactions, helped lower costs for consumers, the increasing expenses involved in maintaining ATM services necessitate these new measures.”

Financial institutions are now required to implement these changes in line with Section 10.7 of the ‘CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020’.
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