Banks commence N100 charge for ATM withdrawals today

• Customers who withdraw cash from their bank’s ATMs will not be charged.

• Using an ATM from a different bank will result in a fee of N100 per N20,000 withdrawal.

Beginning today, March 1, 2025, Nigerian banks will introduce new charges for ATM withdrawals as mandated by the Central Bank of Nigeria (CBN).

Withdrawals from Own Bank: Customers will not incur any fees when withdrawing cash from ATMs of their own bank.

Withdrawals from Other Banks: A fee of N100 will be charged for every N20,000 withdrawn from an ATM belonging to a different bank.

On-Site versus Off-Site ATMs: Withdrawals made at ATMs situated within bank branches will incur a charge of N100 per N20,000, while transactions at off-site ATMs, such as those located in shopping malls or fuel stations, may attract an additional fee of up to N500.

Elimination of Free Withdrawals: The previous allowance of three free withdrawals per month at other banks’ ATMs has been abolished. The CBN states that these changes are intended to address increasing operational costs and enhance the efficiency of ATM services nationwide.

In related news, The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions that impose limitations on customers wishing to withdraw up to N20,000 per transaction at Automated Teller Machines (ATMs), even when they possess adequate funds and seek a larger withdrawal amount.

This announcement was made public in a Q&A section on the CBN’s website, following a recent assessment of ATM withdrawal fees. The bank emphasized that such restrictions are in violation of its regulations and will result in penalties.

The CBN clarified that ATM fees for withdrawals conducted at ATMs belonging to other banks—whether located on-site or off-site—are designed to allow customers to withdraw up to N20,000 per transaction.

“Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately,” the CBN stated.

To combat potential infractions, the regulatory body has encouraged customers who experience such restrictions to report the offending banks.

“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng,” it advised.

Furthermore, the CBN reiterated that banks are prohibited from charging customers beyond the established ATM fees, although they may impose lower fees based on their operational costs and business strategies.

“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive,” the statement explained.

To assist customers in reducing ATM withdrawal fees, the CBN advised them to utilize their own bank’s ATMs whenever feasible. It also promoted the use of alternative payment methods, including mobile banking applications, POS terminals, and other digital platforms.