T he Central Bank of Nigeria (CBN) has reaffirmed that customers withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will continue to be charged a N100 transaction fee.
This was detailed in an FAQ document published on the CBN’s official website on Thursday, providing further clarification on the newly revised ATM transaction fees set to take effect from March 1, 2025.
The directive, outlined in a CBN circular dated February 10, 2025, eliminates the previous allowance of three free monthly withdrawals on other banks’ ATMs, meaning all such transactions will now attract charges.
Breakdown of the New ATM Charges
- Withdrawals from your bank’s ATM → Free of charge
- Withdrawals of N20,000 or less from another bank’s ATM → N100 per transaction
- Withdrawals exceeding N20,000 from another bank’s ATM → N100 for every additional N20,000 or portion thereof
- Withdrawals from off-site ATMs (e.g., shopping malls, fuel stations) → Additional surcharge of up to N500 per transaction
- International ATM withdrawals → Charged based on cost recovery (actual fee applied by international acquirer)
The CBN explained that the charge on withdrawals below N20,000 aims to prevent customers from splitting transactions to bypass fees.
"The reason for applying the fee for every N20,000 withdrawal is to prevent customers from breaking their withdrawals into smaller amounts to avoid charges," the document stated.
CBN Warns Banks Against Overcharging Customers
The apex bank has warned financial institutions against imposing charges beyond the prescribed limits, stating that violations will result in sanctions.
Additionally, banks cannot force customers to withdraw less than N20,000 per transaction if they have sufficient funds in their accounts.
Customers who encounter such restrictions are advised to report complaints to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
CBN Urges Nigerians to Explore Alternative Payment Methods
To minimize transaction fees, the CBN encourages customers to prioritize withdrawals from their own bank’s ATMs and explore alternative payment options such as:
- Mobile banking applications
- POS transactions
- Electronic bank transfers
As Nigeria moves towards a cashless economy, the new policy is expected to reduce dependency on cash transactions while enhancing financial inclusion.
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