The Central Bank of Nigeria (CBN) has clarified the newly reviewed N100 charge on withdrawals at another bank’s ATM (Not-On-Us Transactions), stating that the fee applies whether or not the withdrawal amount is up to N20,000.
In a Frequently Asked Questions (FAQs) document on the review of ATM transaction fees seen by Nairametrics, the CBN explained that the reason for applying the fee for every N20,000 withdrawal is to prevent customers from being compelled to break their withdrawals into smaller amounts.
“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 transaction.
“In other words, ATM transactions will incur a base fee of N100 per transaction. It is also important to note that a tiered fee structure will apply for transactions exceeding N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or portion thereof,” the document explains.
Sanctions await offenders
The CBN emphasized that banks are required to allow customers to withdraw up to N20,000 per transaction. “Any bank that compels a customer with sufficient funds in her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately,” the CBN warned.
- The apex bank also encouraged consumers who are denied the right to withdraw up to N20,000 per transaction to file a complaint with the CBN via cpd@cbn.gov.ng.
- The CBN also provided an explanation of the difference between on-site and off-site ATMs: on-site ATMs are located within or directly affiliated with a bank branch, while off-site ATMs are found in locations such as shopping malls, fuel stations, or other public areas.
- The CBN noted that banks and other financial institutions are not allowed to charge more than the N500 per N20,000 surcharge for an off-site ATM withdrawal prescribed in the earlier circular. These fees will be displayed at the point of withdrawal, allowing customers to make informed decisions before proceeding with the transaction.
For withdrawals outside Nigeria, the CBN stated that banks will apply a cost recovery fee, meaning the exact charge imposed by the international ATM acquirer will be passed on to the customer.
What you should know
Nairametrics reported on Wednesday that the Central Bank of Nigeria (CBN) has announced a major revision to its Automated Teller Machine (ATM) transaction fees, effectively eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
- This directive, outlined in a circular dated February 10, 2025, applies to all banks and financial institutions operating in Nigeria and is set to take effect from March 1, 2025.
- The circular was signed by John S. Onojah, Acting Director of the Financial Policy and Regulation Department, and released on the apex bank’s website on Tuesday.
According to the circular, the CBN has reviewed the ATM transaction fees stipulated under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
