The Central Bank of Nigeria (CBN) has announced the removal of free withdrawals for bank customers using ATMs of other banks.

The policy is set to take effect from March 1, 2025. With the change, all interbank ATM withdrawals will now attract charges, marking the end of the three free monthly withdrawals previously allowed.

This was contained in a circular dated February 10, 2025, and addressed to all banks and financial institutions.

“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,” the circular partly read.

Under the new directive, customers will pay ₦100 per ₦20,000 withdrawal when using another bank’s ATM. Additional surcharges of up to ₦450 may also apply. Similarly, withdrawals from ATMs located within bank branches will attract a charge of ₦100 per ₦20,000 withdrawn. For international transactions, the cost-recovery charge will be equivalent to the fee set by the international acquirer.

The CBN stated that the policy is aimed at reducing operational costs for banks and improving the efficiency of ATM services across the country.

The banking regulator has assured the public that it remains committed to maintaining a stable financial system while encouraging the adoption of digital payment solutions.