The Central Bank of Nigeria (CBN) has issued a stern warning to commercial banks across the country, cautioning them against restricting customers from withdrawing up to ₦20,000 per transaction from Automated Teller Machines (ATMs). In a move aimed at protecting consumer rights and ensuring fair banking practices, the apex bank has vowed to impose sanctions on any financial institution found guilty of enforcing such limitations.
This development was disclosed in a detailed ‘Question and Answer’ explainer released by the CBN on Thursday. The document reaffirmed the bank’s commitment to upholding regulations that guarantee customers access to their funds without unnecessary restrictions. 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 CBN stated.
The directive comes amid growing complaints from bank customers who have faced difficulties accessing their funds through ATMs. Many have reported being forced to make multiple transactions to withdraw amounts exceeding the limits imposed by some banks, often incurring additional charges in the process. The CBN’s intervention seeks to address these grievances and restore confidence in the banking system.
To ensure compliance, the CBN has urged affected customers to report any bank that imposes such restrictions. “Consumers denied the right to withdraw up to ₦20,000 per transaction are encouraged to file a complaint with the CBN using cpd@cbn.gov.ng,” the apex bank advised. This move empowers customers to hold banks accountable and ensures that their concerns are addressed promptly.
The CBN also clarified its stance on ATM fees, emphasizing that banks must not exceed the prescribed charges. However, they are permitted to charge lower fees 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,” the CBN explained.
While the regulation allows for flexibility in charging lower fees, the CBN recommended that customers withdraw cash from their own bank’s ATMs to avoid incurring additional charges. This advice aligns with the bank’s broader goal of promoting cost-effective banking practices and reducing the financial burden on customers.
The CBN’s latest directive is part of its ongoing efforts to enhance the efficiency and transparency of Nigeria’s banking sector. Over the years, the apex bank has introduced several measures aimed at safeguarding consumer interests, including the implementation of the Bank Verification Number (BVN) system, the introduction of cashless policies, and the regulation of bank charges.
This latest move underscores the CBN’s commitment to addressing the challenges faced by bank customers and ensuring that financial institutions operate within the bounds of established regulations. By taking a firm stance against banks that impose arbitrary withdrawal limits, the CBN is sending a clear message that consumer rights must be respected.
The decision has been met with widespread approval from customers, many of whom have long struggled with the inconvenience of limited ATM withdrawals. For small business owners and individuals who rely heavily on cash transactions, the ability to withdraw up to ₦20,000 per transaction is a significant relief. It not only saves time but also reduces the costs associated with multiple transactions.
However, the directive also raises questions about the operational challenges faced by banks. Some financial institutions have cited security concerns and the need to manage cash availability as reasons for imposing withdrawal limits. While these concerns are valid, the CBN’s position is clear: banks must find ways to balance operational efficiency with customer convenience without compromising on regulatory compliance.
As the CBN moves to enforce this regulation, banks are expected to review their ATM policies and make the necessary adjustments to avoid sanctions. This may involve increasing cash supplies to ATMs, enhancing security measures, and improving overall service delivery to meet customer expectations.
For customers, the CBN’s directive is a welcome development that promises to make banking more accessible and user-friendly. By empowering customers to report violations and holding banks accountable, the apex bank is fostering a culture of transparency and accountability in the financial sector.
In the broader context, this move reflects the CBN’s proactive approach to addressing emerging challenges in the banking industry. As Nigeria continues to transition toward a more digital and cashless economy, ensuring that customers have seamless access to their funds is critical. The CBN’s intervention not only protects consumer rights but also strengthens public trust in the banking system.
As the deadline for compliance approaches, all eyes will be on commercial banks to see how they adapt to the new directive. For now, customers can take solace in the fact that their concerns are being heard and that the CBN is taking decisive action to safeguard their interests.
In a country where access to financial services is often fraught with challenges, the CBN’s latest move is a step in the right direction. It reaffirms the bank’s role as a regulator committed to promoting fairness, transparency, and efficiency in the banking sector. For millions of Nigerians, this directive is more than just a policy change—it is a promise of better banking experiences and a brighter financial future.
