The Central Bank of Nigeria (CBN) has declared that, as of March 1, 2025, withdrawals of ₦20,000 or less made through Automated Teller Machines (ATMs) of banks other than the card-issuing bank will be subject to a tax of ₦100.
Key Points:
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On-Us Transactions: Withdrawals made at ATMs of the customer’s own bank will remain free of charge.
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Not-On-Us Transactions:
- On-Site ATMs: Located within or directly affiliated with a bank branch; a fee of ₦100 per withdrawal of ₦20,000 or less will be charged.
- Off-Site ATMs: Situated in locations such as shopping malls or fuel stations; an additional surcharge of up to ₦500 per transaction may apply.
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International Withdrawals: Charges will reflect the exact fees imposed by international acquirers.
According to the CBN, the ₦100 fee for withdrawals of ₦20,000 or less is meant to deter customers from dividing transactions into smaller sums to avoid paying fees.
Additionally, the three free withdrawals per month that were formerly permitted from ATMs operated by other banks have been eliminated.
Banks may choose to charge less depending on their business strategy, but they are not allowed to charge more than the specified fees.
Consumers who have enough money but encounter limitations or are forced to withdraw less than ₦20,000 per transaction are urged to contact the CBN’s Consumer Protection Department via cpd@cbn.gov.ng.
To minimize transaction fees, the CBN advises customers to use their own bank’s ATMs and consider alternative payment methods such as mobile banking applications, electronic transfers, and Point of Sale (PoS) transactions.
