The Central Bank of Nigeria (CBN) has confirmed that a N100 fee will apply to customers withdrawing less than N20,000 from ATMs operated by banks other than their own. This comes amid criticism from the apex bank toward Nigerian banks that limit ATM withdrawals to amounts under N20,000 per transaction.
According to a Frequently Asked Questions document released on Thursday on the CBN website, the fee is part of the revised ATM withdrawal charges set to take effect on March 1, 2025. The new policy aims to prevent banks from forcing customers to break up their withdrawals into multiple transactions of less than N20,000.
The CBN explained, “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). The reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals to less than N20,000 per withdrawal.”
Furthermore, the CBN warned that any bank that forces a customer with sufficient funds to make withdrawals below N20,000, against their preference for a larger sum, will be in violation of the regulation and face appropriate sanctions.
