The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than ₦20,000 from another bank’s Automated Teller Machine (ATM) will still be charged a fee of ₦100 per transaction.
This was disclosed in a Frequently Asked Questions (FAQ) document published on the CBN’s website on Thursday, providing further details on the newly revised ATM transaction fees set to take effect from March 1, 2025.
Breakdown of New ATM Charges
According to the revised fee structure outlined in a CBN circular dated February 10, 2025, withdrawals from a customer’s own bank’s ATM will remain free of charge.
However, customers using ATMs of other banks will incur:
₦100 charge for every withdrawal of ₦20,000 or less at on-site ATMs (those located within or affiliated with a bank branch).
Up to ₦500 surcharge per transaction at off-site ATMs, including those in shopping malls, fuel stations, and public spaces.
International ATM withdrawals will be charged based on cost recovery, meaning customers will pay the exact fee applied by the international service provider.
Rationale Behind Charges on Small Withdrawals
The CBN clarified that the ₦100 charge on withdrawals below ₦20,000 is aimed at preventing customers from splitting transactions into smaller amounts to evade fees.
The document stated:
“Yes, the fee of ₦100 will apply if you withdraw less than ₦20,000 from another bank’s ATM. The reason for applying the fee is to prevent customers from breaking withdrawals into smaller amounts to avoid charges.
ATM transactions will incur a base fee of ₦100 per transaction. A tiered fee structure will also apply, with an additional ₦100 charged for each subsequent withdrawal of ₦20,000 or portion thereof.”
Elimination of Free Monthly ATM Withdrawals
One of the major changes in the new policy is the removal of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
From March 1, 2025, all withdrawals from another bank’s ATM will attract charges, potentially increasing costs for customers who frequently use non-primary bank ATMs.
Enforcement and Customer Protection
The CBN has warned that banks must not charge beyond the prescribed fees but may reduce charges at their discretion.
Additionally, banks found compelling customers to withdraw less than ₦20,000 per transaction despite sufficient funds in their accounts will be sanctioned.
Affected customers are encouraged to report violations to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
CBN’s Advice to Reduce Charges
To minimise transaction fees, the CBN has advised Nigerians to:
Use their bank’s ATMs whenever possible.
Explore alternative payment methods such as mobile banking, POS transactions, and electronic transfers to reduce reliance on cash withdrawals.
The new fee structure reflects CBN’s efforts to streamline ATM transactions, encourage digital payments, and enhance financial inclusion across the country.
