The Central Bank of Nigeria (CBN) has defended its recent policy imposing charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than a customer’s own.
Speaking on Channels Television’s ‘Sunrise’ programme on Saturday, CBN’s Acting Director of Financial Policy and Regulation, John Onojah stated that the move will benefit both financial institutions and their customers.
Onojah added that the policy aims to address cash shortages at ATMs while allowing banks to recover operational costs.
“We have secured commitments from banks to ensure that ATMs remain stocked with cash at all times. At a minimum, customers should be able to withdraw up to N20,000 without issues,” Onojah assured.
READ ALSO: CBN announces ATM withdrawal charges, ends free transactions
He further noted that the policy would extend ATM availability even in remote areas, including machines not located on bank premises.
According to him, deploying ATMs requires significant investment, and the charges will help financial institutions recover costs while maintaining efficient services.
“The reality is that installing and maintaining ATMs is capital-intensive. While we ensure that customers have continuous access to cash, banks also need to offset the expenses of running these machines,” he added.
Onojah clarified that the charges apply only when customers withdraw cash from ATMs belonging to other banks, emphasising that withdrawals from one’s own bank’s ATM remain free of charge.
In a circular issued on Tuesday, the CBN announced that, effective March 1, 2025, customers withdrawing from another bank’s ATM will be charged N100 for every N20,000.
READ ALSO: World Bank charges CBN on inflation-control measures
Additionally, for off-site ATMs—those located outside bank premises, such as in malls and restaurants—an extra surcharge of up to N500 per N20,000 withdrawal will be applied, in addition to the standard N100 fee.
The new policy marks the end of the previous allowance of three free withdrawals per month from other banks’ ATMs, as stipulated in Section 10.6.2 of the Guide to Charges by Banks and Other Financial Institutions.
