The Central Bank of Nigeria recently announced new guidelines regarding ATM transaction fees. According to the updated policy, withdrawals below N20,000 from another bank’s ATM will incur a N100 charge per transaction. This directive, effective from March 1, 2025, aims to discourage customers from making multiple small withdrawals to avoid fees.
Withdrawals from one’s bank’s ATMs will remain free, while using ATMs of other banks will result in a N100 charge for withdrawals of N20,000 or less at on-site ATMs located within a bank branch. Off-site ATMs, found in places like shopping malls and fuel stations, will have an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, customers will be charged based on the exact fee applied by the international acquirer for cost recovery. The revised fee structure also eliminates the previous allowance of three free monthly withdrawals at other banks’ ATMs.
Financial institutions are required to adhere to the prescribed fees, and any bank found violating these regulations will face sanctions. Customers experiencing issues like being forced to withdraw less than N20,000 despite having sufficient funds can report complaints to the CBN Consumer Protection Department.
To reduce transaction fees, customers are advised to prioritize using their bank’s own ATMs and explore alternative payment methods like mobile banking, POS transactions, and electronic transfers to lessen reliance on cash withdrawals.