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The Central Bank of Nigeria (CBN) has announced the removal of the three free monthly ATM withdrawals for customers using other banks’ machines. This change will take effect from March 1, 2025.
In a notice dated February 10, 2025, the CBN instructed all banks to implement new withdrawal fees starting in March. Customers will now be charged for every withdrawal made at an ATM of a bank other than their own.
The new rules apply to ATM charges outlined in the CBN’s 2020 Guide to Charges. The circular, signed by John Onojah, Acting Director of the CBN’s Financial Policy and Regulation Department, is meant to encourage more ATM installations across the country while ensuring banks properly charge customers for the service.
Under the new plan, withdrawals at a customer’s own bank’s ATM will remain free. However, customers using another bank’s ATM will pay a fee of N100 for every N20,000 withdrawn at ATMs within bank premises. For off-site ATMs, a fee of N100 per N20,000 withdrawal will apply, with an additional surcharge of up to N500.
The new rules also cover international ATM withdrawals, which will be charged according to the fees set by the foreign acquirer. The CBN explained that these changes were made due to rising operational costs and the need for greater efficiency in ATM services.
This change is likely to increase costs for customers who frequently use ATMs of other banks and may encourage more people to use mobile apps and online banking. The CBN’s directive is also part of a broader push to promote cashless transactions in Nigeria.
In related news, the CBN recently fined nine Nigerian banks a total of N1.35 billion for failing to ensure cash availability at ATMs during the festive season, following spot checks on ATM services.
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