By SpringNewsNG

The Central Bank of Nigeria (CBN) has reaffirmed that Nigerians withdrawing less than N20,000 from another bank’s Automated Teller Machine (ATM) will incur a N100 fee per transaction. This confirmation came through an FAQ document published on the CBN website on Thursday, clarifying 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 fee structure, withdrawals from ATMs belonging to a customer’s bank will remain free. However, those using ATMs of other banks will be charged N100 per withdrawal of N20,000 or less at on-site ATMs (located within bank premises). Off-site ATMs—such as those in shopping malls and fuel stations—will carry an additional surcharge of up to N500 per transaction.

For international ATM withdrawals, customers will bear the exact cost applied by the international acquirer, as charges will be based on cost recovery.

Preventing Transaction Splitting

According to the CBN, the N100 charge on withdrawals below N20,000 aims to discourage customers from splitting transactions to avoid fees. The FAQ document states:

“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).”

Furthermore, a tiered fee structure will apply for withdrawals exceeding N20,000, with an extra N100 charged for every subsequent N20,000 or portion thereof.

Removal of Free Interbank ATM Withdrawals

A significant shift in the policy is the removal of the three free monthly withdrawals previously allowed for customers using ATMs of other banks. Effective March 1, 2025, all interbank ATM withdrawals will attract charges, increasing costs for customers who frequently withdraw cash from ATMs outside their primary bank.

CBN Issues Warning to Banks

The CBN has warned banks against charging customers beyond the prescribed fees. Any bank that forces customers to withdraw in smaller amounts despite having sufficient funds will face sanctions.

Customers experiencing unauthorized charges or difficulties withdrawing their preferred amount are encouraged to report such cases to the CBN Consumer Protection Department via cpd@cbn.gov.ng.