The Central Bank of Nigeria (CBN) has confirmed that the N100 fee will remain in place for customers withdrawing less than N20,000 from Automated Teller Machines (ATMs) of other banks.
This announcement follows the CBN’s admonition to Nigerian banks against imposing restrictions on ATM withdrawals below N20,000 per transaction.
The information was shared in a Frequently Asked Questions document published on the CBN’s website on Thursday.
This directive is part of the CBN’s revised ATM withdrawal charges, which are set to take effect on March 1, 2025. The new policy has generated mixed reactions among Nigerians due to certain ambiguities.
In its update on Thursday, the CBN clarified that the N100 charge for each withdrawal of less than N20,000 is intended to discourage customers from having to split their transactions into amounts below N20,000.
“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 withdrawal”, it stated.
CBN added, “Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately.”
