- Banks have started implementing the N100 charge on withdrawals from another bank’s Automated Teller Machines
- This follows the directive of the Central Bank of Nigeria, which revised ATM transaction fees and eliminated free monthly withdrawals from another bank’s ATM
- The N100 charge applies on transactions of N20,000 or less
Deposit Money Banks (DMBs) have started implementing N100 charge for withdrawals from another bank’s Automated Teller Machines (ATMs).
This follows the directive of the Central Bank of Nigeria (CBN), which eliminated three free monthly withdrawals from another bank’s ATMs.
The CBN, on February 10, 2025, announced the revision of ATM transaction fees, which took effect on March 1, 2025.
In an email to customers, some banks, including Union Bank, announced applicable charges on the usage of debit or credit cards, and urged customers to explore other channels for transactions.
The email seen by TheRadar, read, “Dear customer, please be informed that effective 01 March 2025, the Central Bank of Nigeria (CBN) approved ATM transaction fees will apply to the usage of debit/credit cards.
“We encourage you to use Union Bank ATMs for cash withdrawals or explore our digital banking channels for cheaper and convenient transactions.”
New N100 ATM charge applies on withdrawals of N20,000 or less
According to the CBN, the reviewed N100 ATM charge for cash withdrawals at another bank’s ATM (Not-On-Us transactions) applies on withdrawal amounts of up to N20,000 or less.
It 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.
The apex bank added that a tiered fee structure will apply for transactions above N20,000, with an additional N100 charged for each subsequent withdrawal of N20,000 or a portion thereof.
With the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge. However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
Sanctions for banks limiting N20,000 withdrawal
The CBN also stated that banks are required to allow customers with sufficient funds to withdraw up to N20,000 per transaction.
It added that banks that contravene this would be sanctioned appropriately.
The apex bank also encouraged consumers 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 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 as prescribed in the earlier circular.
Cardoso says new ATM fee to make cash withdrawal seamless
Meanwhile, TheRadar earlier reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the newly revised Automated Teller Machine (ATM) cash withdrawal fee would make for seamless service and ensure cash availability.
Cardoso noted that the policy, which was part of short-, medium-, and long-term solutions devised to prevent the cash scarcity witnessed during the yuletide, aims to prevent the exploitation of bank customers by cash merchants.
