Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will continue to pay a N100 fee per transaction, the Central Bank of Nigeria (CBN) has confirmed.
This policy is part of the revised ATM transaction fees outlined in a circular dated February 10, 2025, and will take effect from March 1, 2025. The directive aims to regulate ATM withdrawal charges and prevent customers from splitting transactions to avoid fees.
New Fee Structure
Under the updated guidelines, ATM withdrawals from one’s own bank will remain free. However, withdrawals from another bank’s ATM will attract a charge of N100 per transaction if the amount is N20,000 or less.
For withdrawals exceeding N20,000, customers will be charged an additional N100 for every N20,000 or portion thereof. This means that withdrawing N50,000 from another bank’s ATM will cost N300 in total charges.
Additionally, ATMs located outside bank premises, such as in shopping malls, fuel stations, and public spaces, will carry an extra surcharge of up to N500 per transaction. International ATM withdrawals will also attract fees based on the exact cost charged by the foreign bank handling the transaction.
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Why the Charges Remain
The CBN explained that the N100 fee for withdrawals below N20,000 is necessary to stop customers from breaking down their withdrawals into smaller amounts to avoid charges.
“The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal,” the apex bank stated in a Frequently Asked Questions (FAQ) document released on its website.
Previously, customers could make up to three free withdrawals per month from other banks’ ATMs. However, from March 1, 2025, all ATM withdrawals outside a customer’s primary bank will attract charges. This change is expected to increase costs for frequent ATM users.
Bank Compliance and Customer Complaints
The CBN has warned that financial institutions must not charge more than the prescribed fees. Banks may, however, reduce charges as part of their business strategy.
The apex bank also stated that banks cannot force customers to withdraw amounts below N20,000 per transaction if they have sufficient funds. Any institution found violating this directive will face sanctions.
Customers who experience such issues are encouraged to report complaints to the CBN Consumer Protection Department at cpd@cbn.gov.ng.
To minimize withdrawal fees, the CBN has urged customers to prioritize using ATMs operated by their own banks. The regulator also encouraged Nigerians to explore alternative payment options such as mobile banking, point-of-sale (POS) transactions, and electronic transfers to reduce cash dependence.