The Central Bank of Nigeria (CBN) has confirmed that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will still incur a N100 fee per transaction.
This was detailed in an FAQ document published on the CBN website on Thursday, providing clarification on the new ATM transaction fees set to take effect from March 1, 2025, as outlined in a circular dated February 10, 2025.
Under the revised structure, withdrawals from ATMs belonging to one’s bank will remain free. However, customers using other banks’ ATMs will be charged N100 per withdrawal of N20,000 or less at on-site ATMs (those located within bank premises). Off-site ATMs, such as those found in shopping malls and fuel stations, will attract an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
The CBN explained that the N100 charge on withdrawals below N20,000 is intended to prevent customers from splitting withdrawals into smaller amounts to avoid fees.
The FAQ document stated, “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).”
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof,” the document further read.
Additionally, customers withdrawing more than N20,000 from another bank’s ATM will be charged an extra N100 for every subsequent N20,000 or portion thereof.
A key change in the policy is the removal of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs. Starting March 1, 2025, all interbank ATM withdrawals will attract charges, increasing costs for customers who rely on ATMs outside their primary bank.
The CBN has also warned banks against charging more than the prescribed fees. Banks that attempt to force customers into withdrawing in smaller amounts despite sufficient funds will face sanctions. Customers encountering such issues can report them to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
