The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will be charged a N100 fee per transaction.
This is part of the newly revised ATM transaction fees set to take effect from March 1, 2025, as outlined in a circular dated February 10. The directive, explained in a Frequently Asked Questions (FAQ) document published by the apex bank, clarifies the new charges affecting cash withdrawals at ATMs across the country.
Under the revised fee structure, withdrawals from ATMs belonging to a customer’s own bank will remain free. However, those using another bank’s ATM will be charged N100 for every withdrawal of N20,000 or less at on-site ATMs—machines located within or directly affiliated with a bank branch.
For off-site ATMs, such as those found in shopping malls, fuel stations, or public spaces, an additional surcharge of up to N500 per transaction will apply. International ATM withdrawals will be charged based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
The CBN stated that the charge on withdrawals below N20,000 is aimed at preventing customers from splitting transactions into smaller amounts to avoid fees.
“Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank’s ATM,” the CBN document read. “The reason for this is to prevent customers from being compelled to break their withdrawals into smaller amounts to evade charges. ATM transactions will now incur a base fee of N100 per transaction. Additionally, a tiered fee structure will apply for transactions exceeding N20,000, with an extra N100 charged for each subsequent withdrawal of N20,000 or a portion thereof.”
Another major change is the removal of the previous three free monthly withdrawals for customers using other banks’ ATMs. From March 1, 2025, all withdrawals from another bank’s ATM will attract charges, potentially increasing costs for frequent ATM users.
The CBN has emphasized that financial institutions must not charge beyond the prescribed fees, although banks may choose to reduce fees based on their business strategies. Any bank found violating these directives—such as forcing customers to withdraw less than N20,000 per transaction despite having sufficient funds—will face sanctions.
Customers experiencing such issues are encouraged to report complaints to the CBN’s Consumer Protection Department via [email protected].
To help reduce transaction fees, the CBN has advised customers to withdraw cash from their bank’s ATMs whenever possible. It also urged Nigerians to explore alternative payment options, including mobile banking, POS transactions, and electronic transfers, to reduce dependence on cash withdrawals.
