The Central Bank of Nigeria (CBN) has issued a warning to banks that limit ATM withdrawals to amounts below N20,000 per transaction. The apex bank stated that any bank imposing such restrictions, despite customers having sufficient funds and requesting a higher amount, would face penalties.
This announcement was made in a Q&A document released by the CBN following its latest review of ATM withdrawal charges. The bank noted that ATM withdrawals from other banks’ machines—both at branch locations and off-site—should allow customers to withdraw up to N20,000 in a single transaction.
The CBN stated: “Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately.”
To address the issue, the CBN has urged customers affected by these restrictions to report their complaints.
“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng.”
The central bank also clarified that financial institutions must not charge customers more than the officially approved ATM fees. However, banks are allowed to set lower fees based on their operational costs and business strategies.
“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive.”
Additionally, the CBN advised customers to prioritize using their own bank’s ATMs to avoid unnecessary charges. It also encouraged people to consider digital payment methods, such as mobile banking apps, POS terminals, and other online payment systems, to reduce dependence on cash withdrawals.
