CBN Issues Warning to Banks Over ATM Withdrawal Limits Below ₦20,000

The Central Bank of Nigeria (CBN) has warned banks against imposing restrictions that prevent customers from withdrawing up to ₦20,000 per transaction at Automated Teller Machines (ATMs). The apex bank stated that any financial institution found enforcing such limitations will face penalties.

This directive was outlined in a ‘Question and Answer’ explainer released on Thursday, following the recent review of ATM withdrawal fees. The CBN emphasized that withdrawal charges for ATMs—whether on-site or off-site—are based on the expectation that customers can access 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 preference for a higher amount, is violating this regulation and will be appropriately sanctioned,” the statement read.

Customers who experience such restrictions have been advised to report the issue to the CBN by emailing cpd@cbn.gov.ng.

Additionally, the CBN reiterated that banks must not exceed the prescribed ATM fees. However, they are allowed to charge lower fees depending on their cost structure and business strategy.

“The charges and surcharges are capped, meaning banks and financial institutions cannot impose fees beyond the limits set in the circular. However, they may charge lower fees based on their operational costs and business development plans,” the apex bank clarified.

To minimize withdrawal charges, the CBN recommended that customers prioritize using ATMs operated by their respective banks. It also encouraged alternative payment methods, such as mobile banking apps, POS terminals, and digital transactions, to reduce dependency on cash withdrawals.