Tag: CBN

Banks across the country have been directed to ensure they have enough cash for customers’ withdrawals from their Automated Teller Machines (ATMs).

The directive was issued to the banks by the Central Bank of Nigeria on Thursday, February 13, 2025, in a ‘Question and Answer’ explainer released in its recent review of ATM withdrawal fees.

The apex bank also warned the banks against pegging ATM withdrawals below N20,000 per transaction, especially when the customer have enough funds and asking for higher amounts.

CBN said, “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.

Customers have also been advised to file complaints against any bank that flouts the CBN’s directive on ATM withdrawals.

“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng.”

“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive,” it said.

The apex bank also advised card users to withdraw funds from their own bank’s ATM’s to avoid incurring additional fees and seek other methods of payments like mobile bank apps, digital payments, POS terminals among others.

The Central Bank of Nigeria, CBN, has scrapped free withdrawals for customers using other banks’ Automated Teller Machines, ATMs. Recall that it was pegged at three free withdrawals per month.

CBN said the review was necessary due to rising costs and the need to improve efficiency of ATM services.

By the new directive, “The three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.”

However, withdrawals made from a customer’s bank ATM will remain free.

Customers using another bank’s ATM will be charged N100 per N20,000 withdrawal – if the ATM is located within bank premises.

But for withdrawals made at off-site ATMs, a charge of N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.

The surcharge, according to CBN, an income of the ATM deployer or acquirer, must be disclosed at the point of withdrawal.

However, international ATM withdrawals would be charged at the exact rate set by the international acquirer.

The CBN circular, dated February 10, read in parts: “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.

“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”