The Central Bank of Nigeria (CBN) has announced a new policy aimed at improving the cash withdrawal experience for customers while supporting the operational costs of banks.
The policy, which will take effect from March 1, 2025, imposes a charge on customers who withdraw cash from ATMs of banks other than their own.
According to CBN’s Acting Director of Financial Policy and Regulation, John Onojah, the initiative is designed to be mutually beneficial for both customers and financial institutions.
In a recent interview on Channels Television’s Sunrise programme, Onojah explained that the new policy will address the common issue of cash shortages at ATMs, ensuring that customers have consistent access to funds.
He further emphasized that, through this policy, customers will be able to withdraw a minimum of N20,000 at their discretion. “We have secured a commitment from the banks to ensure that ATMs are always stocked with cash, and customers will no longer face the inconvenience of empty machines,” Onojah stated.
The policy also takes into account the significant investment required by banks to deploy and maintain ATM machines. Onojah noted, “Installing ATMs is a capital-intensive process.
This policy helps banks recover those costs, while still prioritizing customer access to cash.”
Key features of the new policy include:
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Withdrawal Charges: Customers who withdraw cash from ATMs not operated by their bank will incur a fee of ₦100 per ₦20,000 withdrawn.
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Off-Site ATMs: For ATMs located outside bank premises (such as those at shopping malls, restaurants, and other public locations), an additional surcharge of ₦500 per ₦20,000 will apply, alongside the ₦100 fee for using a non-affiliated bank’s ATM.
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No Fees for On-Us Withdrawals: Customers can continue to withdraw cash free of charge from ATMs owned by the financial institution where they hold an account.
The CBN is optimistic that the new policy will create a more seamless experience for customers while helping banks recover costs associated with ATM operations. The bank also emphasized that the three free monthly withdrawals previously allowed for off-site ATM use will no longer apply, in line with the new changes.
This policy marks a significant step toward ensuring a balanced approach to ATM usage in Nigeria, prioritizing customer convenience while supporting the sustainability of banking services.
