The Central Bank of Nigeria (CBN) has warned commercial banks that it will sanction any institution that compels customers to withdraw less than ₦20,000 per transaction at Automated Teller Machines (ATMs). The apex bank issued this warning on Thursday in a “Question and Answer” explainer following its recent review of ATM withdrawal fees.
According to the CBN, ATM charges for withdrawals made from other banks’ ATMs, both on-site and off-site, are based on the expectation that customers can withdraw up to ₦20,000 per transaction.
“Any bank that compels a customer with sufficient funds in their account to withdraw less than ₦20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately,” the statement read.
The CBN directed affected customers to report such cases by filing complaints via cpd@cbn.gov.ng. It also clarified that while banks must adhere to the prescribed ATM fees, they are permitted to charge less based on their cost structure and business model but must not exceed the stated cap.
“Consumers denied the right to withdraw up to ₦20,000 per transaction are encouraged to file a complaint with the CBN,” the bank advised.
Additionally, the apex bank recommended that customers prioritize withdrawing cash from their own bank’s ATMs to avoid incurring extra fees. It urged Nigerians to explore alternative payment methods such as mobile banking apps, POS terminals, and digital payment options to reduce their reliance on cash withdrawals.
This development comes as the CBN continues its efforts to improve consumer protection and ensure fair banking practices across the country.
