The Central Bank of Nigeria (CBN) has announced a new policy that will impose a ₦100 fee on withdrawals below ₦20,000 from ATMs that do not belong to a customer’s bank. This directive, set to take effect from March 1, 2025, has already sparked criticism from Nigerians who see it as another attempt to exploit bank customers.
According to an FAQ document published by the apex bank, the new fee is designed to prevent customers from breaking up withdrawals into smaller amounts to avoid higher charges. The CBN claims this move will streamline ATM transactions, but many Nigerians are not buying into the justification.
Higher Charges on Off-Site ATMs and International Withdrawals
Under the revised structure, withdrawals from a customer’s bank ATM will remain free. However, using another bank’s ATM will attract a ₦100 charge per transaction for withdrawals up to ₦20,000. For withdrawals above ₦20,000, customers will be charged an additional ₦100 for every extra ₦20,000 withdrawn.
The situation is worse for those using off-site ATMs—machines located outside bank premises, such as shopping malls and fuel stations—as these will come with an additional surcharge of up to ₦500 per withdrawal. Meanwhile, international ATM transactions will be charged based on cost recovery, meaning customers will bear whatever fees the foreign bank imposes.
No More Free ATM Withdrawals from March 2025
Previously, customers were entitled to three free withdrawals per month from other banks’ ATMs. That privilege is now gone. Starting from March 1, 2025, every single withdrawal from another bank’s ATM will attract a charge.
The CBN insists that banks are not allowed to charge above the prescribed fees, though they have the option to lower them if they choose. Any bank caught violating this directive—such as forcing customers to withdraw in smaller amounts to increase transaction fees—will face sanctions.
Nigerians are advised to report any complaints about ATM withdrawal restrictions to the CBN Consumer Protection Department via cpd@cbn.gov.ng. The apex bank has also urged customers to use alternative payment methods, such as mobile banking, POS transactions, and electronic transfers, to avoid excessive withdrawal charges.
While the CBN presents this policy as a means of improving banking efficiency, many Nigerians see it as yet another financial burden on citizens already struggling with economic hardship.
