The Central Bank of Nigeria has confirmed that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine will still be charged a fee of N100 per transaction.
This was revealed in a Frequently Asked Questions document published on the CBN’s website on Thursday, explaining details of the new ATM transaction charges set to take effect from March 1, 2025.
According to the CBN, customers withdrawing from their own bank’s ATM will not be charged. However, using an ATM from another bank will attract a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or near bank branches.
Off-site ATMs, which are placed in locations like shopping malls and fuel stations, will have an additional surcharge of up to N500 per transaction.
For international withdrawals, customers will pay the exact fee charged by the foreign bank processing the transaction.
The CBN explained that the N100 fee on withdrawals below N20,000 is meant to stop customers from splitting withdrawals into smaller amounts to avoid charges.
The FAQ 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).
“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.
“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.”
Under the new policy, the three free ATM withdrawals previously allowed for customers using other banks’ ATMs have been removed. From March 1, 2025, all withdrawals at another bank’s ATM will attract charges.
The CBN has warned that no bank should charge more than the approved fees, though banks may reduce charges based on their business decisions. Any bank found forcing customers to withdraw less than N20,000 per transaction when they have enough money in their account will face sanctions.
Customers who experience such issues can report to the CBN Consumer Protection Department via email at [email protected].
To avoid extra charges, the CBN advised customers to use their own bank’s ATMs or consider alternative payment methods like mobile banking, POS transactions, and bank transfers.
