The Central Bank of Nigeria (CBN) has changed ATM withdrawal fees. This is to help banks manage costs and put more ATMs in place. The new charges will start on March 1, 2025. All banks must follow the CBN’s instructions in the circular sent out on February 10, 2025.
If you withdraw money from your own bank’s ATM, you will not pay any charges. The fee applies only when you use another bank’s ATM.
Here is how the new charges work:
- Withdrawals from your bank’s ATM (On-Us Transactions): Free.
- Withdrawals from another bank’s ATM (Not-On-Us Transactions):
- On-site ATMs (ATMs inside or near a bank branch): ₦100 per ₦20,000 withdrawal.
- Off-site ATMs (ATMs in malls, petrol stations, and public places): ₦100 per ₦20,000 withdrawal plus an extra fee of up to ₦500.
Before you approve the transaction, the ATM will show you any extra charges.
For international ATM withdrawals, the bank will not add extra charges. You will only pay the exact fee set by the foreign ATM provider.
Difference Between On-Site and Off-Site ATMs
- On-Site ATMs are inside or next to bank branches.
- Off-Site ATMs are in places like shopping malls, bus stations, and fuel stations.
What If You Withdraw Less Than ₦20,000?
If you withdraw less than ₦20,000 from another bank’s ATM, you will still pay ₦100. The reason is to stop people from withdrawing money in small amounts just to avoid the fee.
If you withdraw more than ₦20,000, you will pay an extra ₦100 for every ₦20,000 you withdraw. For example:
- ₦5,000 withdrawal = ₦100 charge
- ₦25,000 withdrawal = ₦200 charge
- ₦50,000 withdrawal = ₦300 charge
No More Free Withdrawals at Other Banks’ ATMs
Before now, customers could withdraw three times for free every month from other banks’ ATMs. This will no longer be allowed.
Can Banks Charge More Than the Stated Fees?
No. Banks are not allowed to charge more than what the CBN has approved. However, a bank can choose to charge less than the stated fees if it wants to.
How to Avoid ATM Charges
To avoid paying fees:
- Use your own bank’s ATM.
- Reduce how often you use ATMs in places like malls and fuel stations.
- Consider using mobile banking apps, POS machines, or bank transfers for payments instead of withdrawing cash.
International ATM Withdrawal Charges
If you withdraw money outside Nigeria, you will pay whatever the foreign ATM provider charges. Your Nigerian bank will not add extra fees.
What If a Bank Does Not Allow Withdrawals of ₦20,000 at a Time?
The CBN expects banks to allow withdrawals of up to ₦20,000 per transaction. If a bank forces you to withdraw less than this amount when you have enough money, the bank is breaking the rule.
How to Report a Bank That Does Not Follow the Rules
If a bank does not allow you to withdraw ₦20,000 at a time or charges more than the approved fees, you can report them to the CBN. Send your complaint to gpd@cbn.gov.ng.
