The Central Bank of Nigeria has clarified that the newly reviewed N100 charge on ATM withdrawals from other banks (Not-On-Us transactions) applies regardless of whether the withdrawal amount reaches N20,000.
In a FAQ document on the revised ATM transaction fees, the CBN explained that the N100 charge per N20,000 withdrawal is meant to prevent customers from splitting 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 stated.
The CBN stressed that banks must allow customers to withdraw up to N20,000 per transaction.
“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 CBN urged customers who are denied the right to withdraw up to N20,000 per transaction to report such cases via [email protected].
It also clarified the difference between on-site and off-site ATMs: on-site ATMs are within or directly linked to a bank branch, while off-site ATMs are located in public places like shopping malls and fuel stations.
The CBN stated that banks and financial institutions cannot charge more than the N500 per N20,000 surcharge for off-site ATM withdrawals, as outlined in its earlier circular. These fees will be displayed at the point of withdrawal, enabling customers to make informed decisions before proceeding.
For withdrawals outside Nigeria, the CBN stated that banks will apply a cost recovery fee, meaning customers will bear the exact charge imposed by the international ATM acquirer.
It was earlier reported that the Central Bank of Nigeria has revised its ATM transaction fees, removing the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
This directive, detailed in a circular dated February 10, 2025, applies to all banks and financial institutions in Nigeria and will take effect from March 1, 2025.
