The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than N20,000 from an Automated Teller Machine (ATM) belonging to another bank will still be charged a fee of N100 per transaction.
This was stated in a Frequently Asked Questions (FAQ) document published on the CBN’s website on Thursday. The document provides further details regarding the newly revised ATM transaction fees, which are set to take effect on March 1, 2025. The new fee structure was first announced in a circular issued by the CBN on February 10, 2025.
Under the revised policy, withdrawals from a customer’s own bank’s ATM will remain free. However, for withdrawals made from ATMs of other banks, a charge of N100 will apply for transactions of N20,000 or less. This charge will apply specifically to on-site ATMs—those located within or directly affiliated with a bank branch.
For off-site ATMs, which are found in locations such as shopping malls, fuel stations, and other public places, an additional surcharge of up to N500 per transaction may be applied.
For international ATM withdrawals, the charges will be based on cost recovery. This means that customers will pay the exact fee charged by the international service provider handling the transaction.
The CBN noted that the N100 fee for withdrawals below N20,000 is aimed at discouraging customers from breaking their withdrawals into smaller amounts to avoid charges.
The FAQ document states, “Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank (a bank other than the one that issued your payment card). 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.”
Additionally, the revised fee structure introduces a tiered charge for withdrawals exceeding N20,000. For every additional N20,000 or fraction thereof withdrawn from another bank’s ATM, customers will be charged an extra N100.
Another major change is the removal of the previous allowance for three free monthly withdrawals from other banks’ ATMs. Beginning March 1, 2025, all transactions at ATMs belonging to banks other than a customer’s own will incur charges. This change is expected to increase costs for customers who frequently use ATMs outside their primary bank.
The CBN has clarified that banks are not allowed to charge more than the specified fees. However, individual banks may choose to lower charges based on their business strategies. Any bank found to be violating the new directive, including forcing customers to withdraw less than N20,000 per transaction when they have sufficient funds, will face sanctions.
Customers experiencing such issues are advised to report complaints to the CBN Consumer Protection Department at cpd@cbn.gov.ng.
To help reduce ATM fees, the CBN recommends that customers prioritize withdrawals from their own bank’s ATMs. The central bank also encourages Nigerians to use alternative payment methods, such as mobile banking apps, POS transactions, and electronic transfers, to minimize reliance on cash withdrawals.
