CBN Makes Changes to ATM Withdrawal Limits, Bank Load Machines as N100 Charges Begin
- Nigerian banks have commenced charging N100 per ATM withdrawal for off-site banks in line with CBN order
- The new order allows bank customers using ATMs of other banks to be charged N100 per transaction, while on-site transactions are free
- However, the CBN also increased the ATM withdrawal limits from under N10,000 to N20,000 per transaction
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The new N100 ATM off-site withdrawal charges have begun since March 1, 2025.
Imposed by the Central Bank of Nigeria (CBN), the withdrawal charge will see Nigerians and other ATM users charged 100 per transaction for using ATMs not belonging to their banks, otherwise known as off-site ATMs.
Source: Getty Images
Banks load ATMs with cash as N100 fee applies
Findings show that banks loaded their ATMs with cash as they began the new charges.
The apex bank reviewed the ATM transaction fees in a February 10, 2025 circular.
Under the new order, withdrawals from on-site will attract zero charges while off-site charges will be N100 per transaction.
According to the CBN directive, international ATM withdrawal charges will be based on cost recovery, meaning bank customers will bear the fee applied by the international acquirer.
Customers withdrawing less than N20,000 from other banks will also be charged N100 per transaction.
Banks began loading their ATMs with cash as early as Sunday, February 2, 2025, with several ATMs informing customers of the new charges.
CBN increases withdrawal limits
In addition to the new ATM fee, CBN also increased the withdrawal limit from just under N10,000 for off-site to N20,000 per transaction.
This means that banks can programme their machines to enable customers to withdraw N20,000 at once to be charged the new N100 ATM fee.
The financial sector regulator warned banks of severe penalties if they dispensed lower amounts.
Bank customers are lamenting the extra cost of the new charges, disclosing that the new charge puts extra pressure on earnings and income.
How to avoid the new ATM charges
However, to avoid the new ATM charges, CBN suggests using on-site ATMs or Point-of-Sale (PoS) operators, who charge 2.5% for every transaction.
CBN said:
“You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees. Further, consumers can explore other payment channels such as mobile apps, and POS devices for payments.”
Nigerians ask for fee suspension
The organised labour has mounted pressure on the Nigerian government, asking it to prevail on the CBN to suspend the new ATM fee.
Punch reports that the Trade Union Congress (TUC) and the Socio-Economic Rights and Accountability Project (SERAP) have called for charges suspension.
Source: Getty Images
TUC president, Festus Osifor and Comrade Nuhu Toro, Secretary General asked all Nigerians to reject what they described as an exploitative policy and ask for immediate reversal.
SERAP also asked President Bola Tinubu to ask the CBN to suspend the charges.
“We’ve urged President Tinubu to direct the CBN to immediately suspend the ATM fee hike pending a court verdict on the matter,” SERAP said.
How new CBN ATM charges will affect Nigerians
Legit.ng earlier reported that The Central Bank of Nigeria (CBN) had updated ATM transaction charges to address increasing operational costs and boost ATM efficiency services in the industry.
The apex said the adjustment would encourage the deployment of more ATMs while ensuring fair and transparent customer charges.
According to the CBN, the revised charges will become effective from March 1, 2025, and require all banks and financial institutions to comply with the circular.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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