The Central Bank of Nigeria (CBN) has issued a warning to banks, stating that any institution forcing customers to withdraw less than ₦20,000 per transaction at Automated Teller Machines (ATMs) will face penalties.

In a question-and-answer explainer released on Thursday, the apex bank emphasized that ATM withdrawal fees—both for on-site and off-site machines—are structured with the assumption 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 urged affected customers to report any violations by filing complaints at cpd@cbn.gov.ng.

Additionally, the bank reaffirmed that financial institutions must not exceed the prescribed ATM fees, though they have the flexibility to charge lower amounts based on their cost structure and business model.

“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive.”

To avoid unnecessary charges, the CBN advised customers to use their own bank’s ATMs whenever possible. It also encouraged the use of alternative payment methods, such as mobile banking apps, POS terminals, and digital payment options, to minimize ATM withdrawal costs.