Maximum ATM Withdrawal per Day in Nigeria

How much can you withdraw from an ATM in Nigeria per day? This might be one of the most crucial questions for both locals and travelers who frequently find themselves at cash points. ATMs (Automated Teller Machines) have transformed how people access money, offering a convenient alternative to bank visits. However, just like in any other country, Nigeria imposes certain limits on how much cash one can withdraw per day. These restrictions depend on several factors including the type of account you have, the bank you're using, and the form of withdrawal (domestic or international). In this comprehensive guide, we'll delve deep into everything you need to know about ATM withdrawal limits in Nigeria.

The Current Situation in Nigeria: A Cashless Economy in Transition

Nigeria is increasingly pushing toward a cashless economy, yet cash remains king for many transactions. Despite the introduction of electronic banking systems, mobile payments, and digital wallets, a significant portion of Nigerians still rely on physical cash for their daily needs. In this context, understanding the limits of ATM withdrawals becomes more critical than ever. The Central Bank of Nigeria (CBN) has played a pivotal role in setting these limits to strike a balance between cash use and encouraging digital transactions. Recently, these limits were tightened to promote digital banking, reduce inflation, and combat fraud and corruption.

Key Highlights of Nigeria’s ATM Withdrawal Policies:

• Personal Accounts: The daily ATM withdrawal limit for individuals is typically around ₦100,000 (about $130 USD). This is applicable to most banks, although some banks may offer slightly higher limits for premium account holders or corporate clients.

• Corporate Accounts: For business accounts, the withdrawal limit can be higher, ranging from ₦500,000 to ₦1,000,000, depending on the bank and the nature of the business. However, for high-value transactions, companies are encouraged to use electronic transfers or checks.

• Foreign Accounts and Cards: For foreigners or those using international bank cards at Nigerian ATMs, the limits are often lower, typically around ₦50,000 (about $65 USD) per day. This restriction is in place to regulate foreign currency exchange and reduce the risks of illicit money transfers.

• Fees for Exceeding Limits: Banks often impose penalties if you attempt to exceed these daily limits. These fees can range from ₦100 to ₦500 per transaction, depending on the bank's policy. Additionally, there are transaction fees associated with ATM withdrawals, which can add up if you make multiple withdrawals in one day.

Why Are There Withdrawal Limits?

The Central Bank of Nigeria (CBN) has imposed these restrictions to reduce the reliance on physical cash and to encourage the use of electronic banking channels. Here are the main reasons behind the restrictions:

• Curbing Inflation: A lower cash circulation can help mitigate inflationary pressures, ensuring that there is not too much money chasing too few goods.

• Fighting Corruption and Fraud: Withdrawing large sums of money in cash can facilitate illegal activities such as money laundering, tax evasion, and corruption. Withdrawal limits help mitigate these risks.

• Boosting Financial Inclusion: The Nigerian government is also pushing for broader financial inclusion. With limits on cash withdrawals, more people are encouraged to use banking services, credit cards, and mobile payment platforms, fostering a more inclusive banking system.

Understanding ATM Fees in Nigeria

While knowing your withdrawal limit is essential, you also need to be aware of the various fees associated with ATM withdrawals. These fees differ based on whether you're using your bank's ATM, another bank's ATM, or an international card.

• Domestic ATM Withdrawals: Most Nigerian banks allow a few free ATM withdrawals per month (typically 3-5 transactions). After that, fees are charged for each subsequent transaction, usually around ₦35 to ₦65 per withdrawal.

• International ATM Withdrawals: If you're a foreigner using your international card to withdraw from a Nigerian ATM, the fees are significantly higher. In addition to the withdrawal limit of around ₦50,000 per day, you may face charges as high as ₦500 to ₦1,000 per transaction, depending on your bank.

Are There Ways to Increase Your Withdrawal Limit?

Yes, there are several ways you can increase your daily ATM withdrawal limit:

1. Upgrade Your Account Type: Some banks offer premium or platinum accounts that come with higher withdrawal limits. These accounts typically require a higher minimum balance and may come with additional fees, but they offer more flexibility in terms of ATM withdrawals.

2. Corporate Accounts: If you run a business, opening a corporate account can give you access to higher withdrawal limits (up to ₦1,000,000 per day). Corporate clients are also more likely to be granted special dispensation for large transactions, provided that they meet specific conditions.

3. Negotiating with Your Bank: In some cases, banks may be willing to increase your withdrawal limit for a specific period, especially if you are a long-term customer or if you can provide valid reasons for requiring more cash. This typically involves submitting a request through your bank's customer service, either in person or online.

4. Utilizing Multiple Accounts: If increasing your limit through a single bank isn't an option, you could consider maintaining multiple accounts with different banks. This way, you can withdraw up to the daily limit from each account, effectively doubling or tripling your available cash.

Security Concerns Around ATM Withdrawals in Nigeria

Although ATMs provide convenience, they also come with risks. Some common issues faced by ATM users in Nigeria include fraud, theft, and the possibility of card skimming. Here's how you can protect yourself:

• Avoid Night Withdrawals: Try to withdraw cash during the day and in well-lit, busy areas. ATMs located inside banks are generally safer than those in remote locations.

• Check for Tampering: Always inspect the ATM before inserting your card. Card skimming devices are sometimes attached to ATMs to steal card details.

• Use Mobile Banking: Whenever possible, use mobile or internet banking for your transactions. This reduces your reliance on physical cash and minimizes the risks associated with ATM withdrawals.

Table: ATM Withdrawal Limits Across Major Nigerian Banks

Bank Name	Daily Withdrawal Limit (Individual Accounts)	Daily Withdrawal Limit (Corporate Accounts)	International Withdrawal Limit
Zenith Bank	₦100,000	₦500,000	₦50,000
First Bank	₦150,000	₦1,000,000	₦70,000
GTBank	₦100,000	₦500,000	₦50,000
Access Bank	₦120,000	₦600,000	₦55,000
UBA	₦100,000	₦750,000	₦50,000

This table highlights the differences in withdrawal limits among major banks in Nigeria. While most banks cap daily withdrawals for individuals at ₦100,000, there are slight variations in corporate and international limits.

Conclusion: Adapting to Nigeria’s Financial Landscape

In a country where cash remains vital, but the government is pushing toward a cashless economy, understanding the limitations and policies around ATM withdrawals is crucial. While the limits may feel restrictive, they are part of a broader effort to improve the country's financial stability, combat corruption, and promote digital banking solutions. Whether you're a local resident or an expatriate, being aware of these regulations will help you navigate Nigeria's financial system more effectively. Always plan ahead and explore digital banking alternatives to minimize your reliance on physical cash.