CBN Clarifies N100 ATM Transaction Fee for Withdrawals Below N20,000
- The Central Bank of Nigeria (CBN) has provided clarification on the recent introduction of automated teller machine charges
- The apex bank noted that Nigerians withdrawing less than N20,000 from another bank’s ATM would be charged N100 per transaction
- The new ATM charges regime will kick off in March, and banks have been instructed to ensure there is cash available for clients
The Central Bank of Nigeria (CBN) has updated its guidelines on Automated Teller Machine (ATM) transaction fees, slated to come into effect from March 1, 2025.
According to a Frequently Asked Questions document released on Thursday, February 13, customers withdrawing less than N20,000 from another bank’s ATM will face a standard charge of N100 per transaction.

Source: Getty Images
This directive, outlined in a CBN circular dated February 10, 2025, aims to streamline ATM usage and deter customers from making multiple small withdrawals to circumvent fees.
In the document, the CBN also said withdrawals from the ATMs of one’s bank would remain free of charge.
However, withdrawals from other banks’ ATMs would be charged N100 for transactions of N20,000 or less at on-site locations affiliated with bank branches.
For off-site ATMs situated in venues like shopping malls or fuel stations, an additional surcharge of up to N500 per transaction will apply.
International ATM withdrawals will be subject to cost recovery charges, reflecting the exact fees imposed by international acquirers, Punch reported.
More clarification on CBN's new ATM charges
The CBN also said that financial institutions are now allowed to exceed these stipulated fees. However, banks could choose to lower charges as part of their business strategies.
The apex bank also asked customers restricted from withdrawing above N20,000 despite adequate funds to lodge complaints with the Consumer Protection Department via cpd@cbn.gov.ng.
To avoid transaction fees, the CBN advised consumers to prioritise ATM usage at their primary bank and explore alternatives such as mobile banking apps, electronic transfers and Point of Sale (PoS) transactions.
PoS scams on the rise
Legit.ng also reported that the Nigeria Inter-Bank Settlement System showed PoS scams rising, driven by the persistent cash shortages at ATMs and the rapid expansion of PoS deployments by fintech firms.
The N18 trillion recorded in 2024 represents a 69% increase from the N10.7 trillion processed in 2023. Likewise, transaction volume rose by 8% year-on-year, reaching 1.5 billion in 2024, up from 1.4 billion the previous year.
PoS operators raise withdrawal deposit fees
Also, Legit.ng previously reported that PoS operators across Nigeria had started implementing new deposit and withdrawal fees in response to the current cash scarcity.
The decision by the Central Bank of Nigeria decision to limit PoS operators' cash withdrawals to only N100,000 daily was also listed as another reason for the fee increase.
Another reason PoS operators gave was the introduction of the N50 Electronic Money Transfer Levy (EMTL) charge on every N10,000 deposit in their customers' accounts.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng