The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will continue to pay a fee of N100 per transaction.
This was disclosed in a Frequently Asked Questions (FAQ) document published on the CBN website on Thursday, providing clarity on the revised ATM transaction fees set to take effect from March 1, 2025.
New ATM Withdrawal Charges
According to the revised structure outlined in a circular dated February 10, 2025, withdrawals from ATMs of a customer’s own bank will remain free. However, using another bank’s ATM will attract a charge of N100 per withdrawal of N20,000 or less at on-site ATMs located within bank premises.
For off-site ATMs, such as those at shopping malls and fuel stations, an additional surcharge of up to N500 per transaction will apply. International ATM withdrawals will be charged based on cost recovery, meaning customers will pay the exact fee applied by the foreign service provider.
The CBN explained that the charge on withdrawals below N20,000 is to discourage customers from breaking larger withdrawals into smaller amounts to avoid fees.
The FAQ document stated:
“Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank’s ATM. The purpose of this charge is to prevent customers from splitting withdrawals into smaller amounts to evade fees.
“A base fee of N100 will be charged per transaction. Additionally, a tiered fee structure will apply for withdrawals above N20,000, with an extra N100 charged for every additional N20,000 or portion thereof.”
Removal of Free Monthly ATM Withdrawals
A major change in the new policy is the elimination of the three free monthly ATM withdrawals previously allowed for customers using other banks’ ATMs. From March 1, 2025, all such transactions will attract charges, potentially increasing costs for frequent ATM users.
However, the CBN assured that banks cannot charge more than the prescribed fees, though they may choose to lower them based on their business strategies. Any bank found compelling customers to withdraw less than N20,000 per transaction despite sufficient funds in their account will face sanctions.
Customers experiencing such restrictions are encouraged to report complaints to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
CBN Advises Customers to Minimise ATM Fees
To reduce transaction costs, the CBN has advised Nigerians to prioritise withdrawals from their bank’s ATMs. It also encouraged the use of alternative payment methods such as mobile banking apps, POS transactions, and electronic transfers to reduce reliance on cash.