The Central Bank of Nigeria (CBN) has warned that banks imposing ATM withdrawal limits below N20,000 per transaction will face sanctions. This follows concerns raised by customers regarding recently revised ATM withdrawal fees.
Earlier this week, the CBN announced an increase in ATM withdrawal charges, effective March 1. Customers will be required to pay a N100 fee for every N20,000 withdrawn from another bank’s on-site ATM. Withdrawals from off-site ATMs will incur an additional surcharge of up to N500 per transaction, which will be disclosed at the point of withdrawal.
In a document addressing frequently asked questions, the CBN clarified: “The fees are based on banks allowing customers to withdraw up to N20,000 per transaction. Any bank that forces a customer with sufficient funds to withdraw less than N20,000 per transaction, against the customer’s preference, will be in violation of this regulation and will face sanctions.”
The CBN also encouraged customers to report violations by emailing cpd@cbn.gov.ng. Additionally, the regulator emphasized that banks are prohibited from charging more than the fees outlined in the circular, though they have the flexibility to charge less based on their cost structure and business goals.
To avoid ATM transaction fees, the CBN advised customers to withdraw from their own bank’s ATM (On-Us transactions) and limit the use of off-site ATMs to minimize surcharges. Customers were also encouraged to explore alternative payment methods, such as mobile apps and POS devices.
