The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than ₦20,000 from another bank's Automated Teller Machine (ATM) will continue to incur a charge of ₦100 per transaction.
This was disclosed in an FAQ document published on the CBN's website on Thursday, providing further clarification on the newly revised ATM transaction fees set to take effect from March 1, 2025.
Revised ATM Charges
According to the CBN circular dated February 10, 2025, the revised fee structure includes:
Withdrawals from own bank's ATMs remain free.
Withdrawals of ₦20,000 or less from another bank's ATM will attract a ₦100 charge per transaction.
For every additional ₦20,000 withdrawn from another bank's ATM, an extra ₦100 fee will apply.
Off-site ATMs (located outside bank premises, e.g., malls, fuel stations) will attract an additional surcharge of up to ₦500 per transaction.
International ATM withdrawals will be charged based on cost recovery, meaning customers bear the exact fee applied by the international acquiring bank.
No More Free Interbank Withdrawals
Previously, customers were allowed three free monthly withdrawals from other banks' ATMs, but this provision has been removed. From March 1, 2025, all withdrawals at ATMs of banks other than the cardholder's bank will attract charges, increasing costs for frequent ATM users.
Rationale Behind the Charges
The CBN stated that the charge on withdrawals below ₦20,000 is intended to prevent customers from splitting transactions into smaller amounts to avoid fees. The directive also aims to encourage digital transactions and reduce over-reliance on cash withdrawals.
CBN's Enforcement and Customer Protection
The apex bank has warned financial institutions against charging fees beyond the prescribed limits. Additionally, banks found compelling customers to withdraw less than ₦20,000 per transaction despite having sufficient funds will face sanctions.
Customers experiencing such restrictions can file complaints with the CBN Consumer Protection Department via cpd@cbn.gov.ng.
CBN's Advice to Customers
To minimise transaction costs, the CBN advises Nigerians to:
Use their bank's ATMs whenever possible.
Leverage mobile banking, POS transactions, and electronic transfers as alternative payment methods.
The revised ATM fee structure reflects the CBN's push towards a cashless economy, encouraging Nigerians to embrace digital banking solutions.
