13th February, 2025
By Kazeem Ugbodaga
The Central Bank of Nigeria (CBN) has issued a stern warning to banks imposing withdrawal limits below N20,000 per transaction, declaring that such actions violate its regulations and will attract severe sanctions.
In a Q&A explainer published on its X handle on Thursday, the apex bank clarified that customers must be allowed to withdraw up to N20,000 per transaction if they have sufficient funds in their accounts.
It emphasised that any bank forcing customers to take out less than N20,000 against their will would face disciplinary action.
“Any bank that compels a customer with sufficient funds in her account to withdraw less than N20,000 per transaction against the customer’s desire for a higher sum would be contravening this regulation’s spirit and sanctioned appropriately,” the CBN warned.
The CBN also advised Nigerians on how to avoid ATM transaction fees, urging them to use their bank’s ATMs (On-Us transactions) and limit withdrawals from other banks’ ATMs to minimise surcharges.
It further encouraged the use of alternative payment channels such as mobile banking apps, POS terminals, and digital payments.
As part of its regulatory enforcement, the CBN reaffirmed that the new ATM transaction fees will take effect from March 1, 2025.
It directed all banks and financial institutions to fully comply with the new withdrawal rules as outlined in its circular dated February 10, 2025.
