CBN Implements New ATM Withdrawal Charges in Nigeria

The Central Bank of Nigeria (CBN) has introduced new charges for ATM cash withdrawals, effective March 1, 2025. Under this directive, customers using bank ATMs will now face additional fees based on the location of the ATM.

New ATM Withdrawal Charges in Nigeria

Customers withdrawing cash from Automated Teller Machines (ATMs) will incur the following charges:

• On-Site ATMs (Inside Bank Premises): ₦100 per withdrawal of ₦20,000 or less.
• Off-Site ATMs (Outside Bank Premises): ₦100 per ₦20,000 withdrawal, plus an additional ₦500 surcharge per transaction.

This means that customers withdrawing ₦20,000 from an off-site ATM could pay up to ₦600 in charges.

Key Changes to ATM Transactions

1. No More Free Interbank Withdrawals: Previously, customers were allowed three free monthly withdrawals from other banks’ ATMs. This has been discontinued.
2. Higher Charges on Off-Site ATMs: ATMs located in shopping malls, fuel stations, and other non-bank locations now attract higher withdrawal fees.
3. Encouragement for Digital Transactions: The CBN urges customers to use alternative payment methods like mobile banking, POS transactions, and electronic transfers to reduce cash dependency.

How to Avoid High ATM Charges

To minimize these fees, CBN advises customers to:

• Withdraw cash from their own bank’s ATMs whenever possible.
• Use digital banking options such as USSD, mobile apps, and online transfers.
• Make larger withdrawals at once instead of multiple small withdrawals.

CBN’s Warning to Banks

The CBN has warned banks against manipulating ATM withdrawal limits to increase transaction fees. Any bank found violating these directives will face strict penalties. Customers experiencing unfair charges are encouraged to report complaints to the CBN’s Consumer Protection Department via cpd@cbn.gov.ng.

Conclusion

The new CBN ATM withdrawal charges are designed to ensure banks continue providing efficient ATM services while encouraging digital transactions. However, customers must strategize their cash withdrawals to avoid excessive charges.