In a move set to reshape banking habits across Nigeria, the Central Bank of Nigeria (CBN) has confirmed that withdrawals below N20,000 from Automated Teller Machines (ATMs) of other banks will now attract a N100 fee per transaction. This policy, part of a broader revision of ATM charges, will take effect from March 1, 2025.
The clarification was provided in an FAQ document published on the CBN website on Thursday, following an earlier circular dated February 10, 2025. Under the new structure, withdrawals from ATMs owned by a customer’s bank will remain free. However, customers withdrawing cash from ATMs belonging to other banks will be subject to a N100 charge for every withdrawal of N20,000 or less at ATMs located within bank premises.
For withdrawals at off-site ATMs—such as those at shopping malls, supermarkets, and fuel stations—an additional surcharge of up to N500 per transaction may apply. Meanwhile, international ATM withdrawals will be charged based on cost recovery, meaning customers will pay the exact fee imposed by the international acquirer.
The CBN explained that the N100 charge on withdrawals below N20,000 is designed to prevent customers from bypassing transaction fees by splitting their withdrawals into smaller amounts. According to the document, a tiered structure will apply to withdrawals exceeding N20,000, with an extra N100 charged for every additional N20,000 or portion thereof.
The FAQ document reads:
“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). ATM transactions will incur a base fee of N100 per transaction. Additionally, for withdrawals above N20,000, customers will be charged an extra N100 for every subsequent N20,000 or portion thereof.”
One of the most significant changes is the scrapping of the three free interbank ATM withdrawals previously enjoyed by customers. Starting March 1, 2025, every withdrawal from another bank’s ATM will attract a charge, increasing costs for customers who rely on ATMs outside their primary bank.
To prevent excessive charges, the CBN has issued a stern warning to banks, prohibiting them from imposing fees beyond the prescribed limits. Banks that attempt to manipulate customers into withdrawing in smaller denominations—despite sufficient funds—will face regulatory sanctions.
Customers who experience unauthorized charges or unfair withdrawal restrictions have been advised to report such incidents to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
With these new policies, the cost of banking transactions is set to rise, prompting customers to rethink their ATM usage strategies. Whether this move will encourage digital transactions or spark widespread backlash remains to be seen.
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