Abuja, Nigeria — The Central Bank of Nigeria (CBN) has confirmed that a ₦100 fee will continue to apply for withdrawals under ₦20,000 from other banks’ Automated Teller Machines (ATMs). This update was outlined in a Frequently Asked Questions (FAQ) document published on the CBN’s website on Thursday, offering clarity on the newly revised ATM charges set to take effect from March 1, 2025.
Breakdown of Revised ATM Charges
The CBN’s circular dated February 10, 2025, details the new fee structure as follows:
- Withdrawals from own bank’s ATMs: Free
- Withdrawals of ₦20,000 or less from other banks’ ATMs: ₦100 per transaction
- Additional withdrawals above ₦20,000 from other banks’ ATMs: ₦100 for every additional ₦20,000 withdrawn
- Withdrawals from off-site ATMs (e.g., at malls or fuel stations): Up to ₦500 per transaction
- International ATM withdrawals: Fees will reflect the exact costs charged by the international bank involved
End of Free Interbank ATM Withdrawals
In a significant shift, the CBN has removed the previous provision that allowed customers three free interbank ATM withdrawals each month. Starting March 1, 2025, all withdrawals from ATMs operated by banks other than the cardholder’s own bank will incur the stipulated charges. This change is expected to increase costs for individuals who frequently use ATMs.
Why the Charges?
The CBN explained that the charges for transactions below ₦20,000 are designed to deter customers from breaking down larger withdrawals into smaller amounts to avoid fees. The policy also supports the bank’s ongoing drive to reduce cash dependency and encourage the use of digital payment methods.
Enforcement and Consumer Protection
The CBN has issued a stern warning to financial institutions, cautioning against imposing fees beyond the approved limits. Banks that compel customers to make multiple small withdrawals instead of one larger transaction will face penalties.
Customers who encounter such practices can lodge complaints with the CBN Consumer Protection Department by emailing cpd@cbn.gov.ng.
Tips to Avoid Extra Charges
To help customers reduce transaction costs, the CBN advises the following:
- Use your own bank’s ATMs whenever possible.
- Embrace mobile banking and electronic transfers for payments.
- Opt for Point of Sale (POS) transactions as an alternative to cash withdrawals.
Push Towards a Cashless Economy
This updated fee structure is part of the CBN’s broader strategy to promote a cashless economy. The apex bank believes that reducing the frequency of cash-based transactions will enhance financial security, increase operational efficiency, and bring more Nigerians into the formal financial sector.
With the implementation date drawing closer, Nigerians are urged to familiarize themselves with the revised ATM charges and explore digital banking solutions to manage costs effectively