The Central Bank of Nigeria (CBN) has announced an end to free withdrawals for customers using Automated Teller Machines (ATMs) of banks other than their own. The new policy, which takes effect on March 1, 2025, was outlined in a circular dated February 10, 2025, and signed by John Onojah, the acting Director of the Financial Policy and Regulation Department.

Under the revised directive, customers withdrawing cash from another bank’s ATM will be charged ₦100 for every ₦20,000 withdrawn. Additionally, off-site ATMs—those located outside bank branches in places such as shopping malls and eateries—will attract an extra surcharge of up to ₦500 per ₦20,000, on top of the standard ₦100 fee. However, withdrawals from ATMs operated by a customer’s own bank will remain free.

According to the CBN, the decision was driven by rising operational costs and the need to improve ATM service efficiency nationwide. The apex bank stated that the new policy is expected to accelerate the deployment of ATMs and ensure that financial institutions apply appropriate charges to sustain operations.

This move marks a significant departure from the previous policy, which allowed bank customers three free withdrawals per month at other banks’ ATMs. The adjustment is part of the CBN’s broader strategy to maintain service delivery while addressing financial sustainability within Nigeria’s banking sector.