CBN sets ₦100 ATM withdrawal fee for transactions below ₦20,000

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 revealed in an FAQ document published on the CBN’s website on Thursday, clarifying 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 updated fee structure includes:

• Withdrawals from an account holder’s own bank’s ATMs will 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• For every additional ₦20,000 withdrawn from another bank’s ATM, an extra ₦100 fee will apply.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 (those located outside bank premises, such as in malls and 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 will bear the exact fee applied by the international acquiring bank.

No More Free Interbank Withdrawals

Previously, customers were entitled to three free monthly withdrawals from other banks’ ATMs. However, this provision has been removed. Starting March 1, 2025, all withdrawals at ATMs of banks other than the cardholder’s bank will attract charges, increasing costs for frequent ATM users.

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Rationale Behind the Charges

The CBN explained that the charge on withdrawals below ₦20,000 is intended to discourage customers from splitting transactions into smaller amounts to evade fees. The directive also aligns with efforts to promote 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 that compel customers to withdraw less than ₦20,000 per transaction despite having sufficient funds will face sanctions.

Customers facing such restrictions can file complaints with the CBN Consumer Protection Department via cpd@cbn.gov.ng.

CBN’s Advice to Customers

To minimize 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.