CBN defends new ATM withdrawal charges, says policy benefits banks and customers
The Central Bank of Nigeria (CBN) has justified its new policy imposing charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than a customer’s own, stating that the move will benefit both banks and customers.
CBN’s Acting Director, Financial Policy and Regulation Department, John Onojah, made this clarification during an interview on Channels Television’s Sunrise program on Saturday. He explained that the policy aims to address ATM cash shortages, ensure better access to cash, and help banks recover operational costs.
Onojah stated that banks have committed to ensuring ATMs are always stocked with cash, and customers can withdraw at least ₦20,000 at a time. He added that the policy would improve ATM availability, particularly in remote areas, by encouraging banks to deploy more machines outside their premises. He emphasized that maintaining ATMs is costly, and the charges will allow banks to recover expenses while ensuring uninterrupted cash availability.
According to Onojah, the charges apply only to withdrawals from other banks’ ATMs, while customers withdrawing from their own banks’ ATMs will not incur any additional fees.
The CBN’s circular, issued on Tuesday, announced that from March 1, 2025, customers withdrawing from ATMs of banks other than their own will be charged ₦100 per every ₦20,000 withdrawn. It also removed the previous policy allowing three free withdrawals per month from other banks’ ATMs.
Additionally, for off-site ATMs—those located in shopping malls, eateries, and other public places—customers using other banks’ ATMs will pay an extra ₦500 surcharge per ₦20,000 withdrawal, in addition to the standard ₦100 fee.
The CBN insists that the policy is a balanced approach that supports both financial institutions and consumers, ensuring better ATM services across the country.
