CBN Scraps Free ATM Withdrawals for Other Banks’ Customers

The Central Bank of Nigeria (CBN) has scrapped free ATM withdrawals for customers using other banks’ Automated Teller Machines (ATMs). This means that customers will now be charged for withdrawals made from ATMs not owned by their bank.

A woman takes Nigerian Naira from a bank’s automated teller machine (ATM) in Ikeja district in the commercial capital Lagos November 12, 2014. Nigeria’s naira currency weakened slightly on the interbank market on Tuesday due to strong demand for dollars

Prior to this change, customers were allowed three free withdrawals per month from other banks’ ATMs. However, the CBN has reviewed this policy due to rising costs and the need to improve ATM service efficiency.

The CBN has stated that the decision to scrap free ATM withdrawals is aimed at reducing the financial burden on banks and other financial institutions that deploy and manage ATMs. The apex bank believes that the new charges will help to improve the efficiency and sustainability of the ATM network in Nigeria.

Customers will now be charged ₦100 per ₦20,000 withdrawal when using another bank’s ATM. Additionally, off-site ATMs may attract a surcharge of up to ₦500. The CBN has clarified that the surcharge is an income for the ATM deployer or acquirer and must be disclosed to customers at the point of withdrawal.

International ATM withdrawals will also attract charges based on the exact rate set by the international acquirer. The CBN has announced that these new charges will take effect from March 1, 2025.

The decision is expected to impact bank customers who frequently use ATMs of other banks. However, the CBN believes that the new charges will help to improve the efficiency and sustainability of the ATM network in Nigeria.

The Bankers’ Committee, which comprises deposit money banks, the CBN, and other stakeholders, has welcomed the decision. The committee believes that the new charges will help to reduce the costs associated with ATM transactions and improve the overall quality of service.

However, some bank customers have expressed concern over the new charges. They argue that the charges will increase the cost of banking services and reduce the convenience of using ATMs.

The CBN has assured customers that the new charges will not lead to a significant increase in the cost of banking services. The apex bank has also encouraged customers to explore alternative channels, such as mobile banking and online banking, which may be more cost-effective.

As the new charges take effect, bank customers are advised to review their banking habits and explore ways to minimize the impact of the charges. Customers can also take advantage of the various alternative channels available to conduct their banking transactions.