Banks Disregard Decrease ATM Withdrawal Limits For Consumers Per CBN Directive

AUTOMATED Teller Machines (ATMs) used by commercial banks in Nigeria are subject to withdrawal limits.

The restrictions differ throughout the nation's banks.

This came after instances of cash scarcity in the latter half of 2023 in certain regions of the nation.

On November 2, 2023, the Central Bank of Nigeria (CBN) stated that a large number of bank withdrawals from its branches and frantic ATM withdrawals by patrons were the causes of the scarcity that was observed in certain regions of the nation.

The CBN further stated that there was a enough supply of banknotes for Nigeria's economic needs and gave the assurance that all of its branches were making every effort to guarantee smooth cash flow in their respective regions.

Even though the shortage persisted, the CBN stated on December 13, 2023, that hoarding was to blame and that the majority of the money granted to banks was in the hands of private citizens.

The CBN made an effort to restrict the flow of cash in 2022 by capping ATM withdrawals in an effort to promote cashless transactions.

On December 6, 2022, it lowered ATM withdrawal limits to N20,000 per day and N100,000 per week. However, following a public outcry, the regulator revised the weekly cash withdrawal restrictions for individual and business organizations across all channels to N500,000 and N5,000,000, respectively, on December 21, 2023 of that same year.

It became operative on January 9, 2023.

However, it was discovered that the ATM withdrawal caps in Lagos State have been reinstated by a number of banks.

Customers are also limited to a specific amount by the cap placed on account holders in the event that they try to withdraw money from another bank.

Only N20,000 in daily ATM withdrawals are permitted for company account holders at the three Guaranty Trust Bank, GTB, branches in Lagos state; non-customers are only permitted to get up to N5,000 per day.

A daily cap of N50,000 for customers and N20,000 for non-customers is in place at another GTBank in Egbeda.

Additionally, account holders at Polaris Bank's Festac and Ikeja branches have a daily ATM withdrawal limit of N50,000; non-customers are limited to N20,000.  

ATMs at United Bank for Africa's (UBA) branches in Fagba and Ogba can only dispense N20,000 and N60,000 to N100,000, respectively, for account holders of the lender; for non-customers, the maximum is N5,000 and N40,000 to N60,000.

Account holders can withdraw N20,000, N60,000 to N70,000, and N70,000 per day from Union Bank branches in Ikeja, Ilupeju, and Berger, respectively.

In contrast, non-customers can withdraw up to N40,000 at the Berger office, but they are limited to N20,000 per day at Union Bank branches in Ikeja and Ilupeju.

The maximum ATM withdrawal amount for Ecobank account holders at its branches in Ogba and Berger is N400,000, while the daily cap for non-customers is N20,000.

The daily limits for account holders at the Keystone Bank branches in Ilupeju, Ogba, and Allen are N40,000, N50,000, and N200,000, respectively; non-customers can withdraw N20,000, N30,000, and N100,000 from the ATM.

ATMs at Zenith Bank's branches in Aguda and Festac have a daily withdrawal limit of N100,000 for account holders; non-customers are limited to withdrawing N30,000 and N50,000, respectively.