The Central Bank of Nigeria (CBN) has announced a new directive on ATM withdrawal charges, impacting Nigerians who withdraw less than N20,000 from another bank’s Automated Teller Machine (ATM).
CBN’s New ATM Withdrawal Policy
According to a Frequently Asked Questions (FAQ) document published on the CBN’s website on Thursday, February 10, 2025, the revised ATM withdrawal fees will take effect from March 1, 2025.
Under the new policy:
- Withdrawals from your bank’s ATM remain free of charge.
- Withdrawals below N20,000 from another bank’s ATM will attract a charge of N100 per transaction.
- Withdrawals at off-site ATMs (ATMs outside bank premises, such as in shopping malls or fuel stations) may incur an additional surcharge of up to N500 per transaction.
- International ATM withdrawals will be charged based on cost recovery, meaning customers will pay the exact fee applied by the international acquiring bank.
Why Is CBN Implementing These Charges?
The CBN ATM withdrawal charges are designed to prevent customers from splitting transactions into multiple smaller withdrawals to avoid fees.
The CBN stated:
“Yes, the fee of N100 will apply if you withdraw less than N20,000 from another bank’s ATM. This policy is to prevent customers from breaking withdrawals into multiple small transactions.”
Additionally:
- Customers withdrawing more than N20,000 from another bank’s ATM will be charged N100 for every subsequent N20,000 or portion thereof.
- The previous three free monthly withdrawals from another bank’s ATM have been removed.
How Will This Affect Bank Customers?
The removal of the free ATM withdrawal policy means that all interbank ATM withdrawals will now attract charges. Customers who frequently use other banks’ ATMs should expect higher withdrawal costs.
However, the CBN has warned banks against forcing customers to withdraw in smaller amounts below N20,000 per transaction. Any bank found violating this directive will face sanctions.
How to Avoid CBN ATM Withdrawal Charges
To minimize ATM withdrawal charges, customers are advised to:
- Withdraw from their own bank’s ATMs, where transactions remain free.
- Use alternative payment methods, such as mobile banking apps, POS machines, and electronic transfers, to reduce reliance on cash withdrawals.
- Monitor banking charges carefully and report any violations to the CBN Consumer Protection Department via cpd@cbn.gov.ng.
Final Thoughts
With the new CBN ATM withdrawal charges taking effect on March 1, 2025, Nigerians should plan their transactions strategically to avoid unnecessary fees. The policy change is expected to impact customers who rely on other banks’ ATMs, making digital banking alternatives more appealing.