In a game-changing decision that could shake up the way Nigerians access cash, the Central Bank of Nigeria (CBN) has announced the removal of the three free monthly withdrawal transactions from ATMs of other banks, effective March 1, 2025. This unexpected move comes as part of a sweeping overhaul designed to address rising operational costs and improve the efficiency of Automated Teller Machine (ATM) services in the banking sector.
The official circular, posted on the CBN’s website and signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, revealed that the bank is revising its ATM transaction fee structure, which has been a subject of growing concern for both customers and financial institutions.
This bold revision is aimed at ensuring that ATM services remain sustainable while improving their efficiency and coverage. In essence, this new policy is not just about cutting back on free services; it’s part of a larger strategy to speed up the deployment of ATMs across the country, offering a more robust infrastructure for the future of banking.
Here’s the shocker: As of March 1, 2025, customers will no longer enjoy the three free monthly withdrawals when using ATMs from banks other than their own. Instead, a fee of N100 per N20,000 withdrawal will apply to transactions made at ATMs not belonging to the customer’s bank. And the plot thickens. If you’re using an ATM of another institution, expect to pay a surcharge of N100, plus an additional fee of up to N500 per N20,000 withdrawal.
But that’s not all. The CBN has made it clear that these fees must be disclosed to consumers at the point of withdrawal, adding an extra layer of transparency to the process. No more hidden surprises when you’re trying to get cash at the machine.
In response to the decision, Nigerians have taken to social media, expressing a mix of frustration and curiosity. “How will this impact daily transactions?” many have wondered, with some fearing the added cost of withdrawals could push up the price of basic services and daily expenses. With a more transparent fee structure and a potential uptick in ATM deployments across the country, consumers are left questioning how banks and financial institutions will adapt to the new rules.
One thing is for certain—the CBN’s move to eliminate the free ATM withdrawals could set the stage for further changes in how Nigerians interact with their banks, especially in a country where cash access remains a vital part of daily life. The full impact remains to be seen, but with March 1 just around the corner, Nigerians are bracing for a new reality at the ATM.
