*The Central Bank of Nigeria explains the new Automated Teller Machine cash withdrawal fees for bank customers are introduced to address rising cost, and improve efficiency of ATM services, bank customers express disappointment at the N100 per N20,000 transactions on other ATMs located within banking premises

Gbenga Kayode | 绿帽献妻

Several Nigerian bank customers have expressed disappointment in the Central Bank of Nigeria’s (CBN) new regulation for Automated Teller Machine (ATM) withdrawal fees on consumers’ transactions on other ATMs.

绿帽献妻 reports the bank customers and other consumers of financial products and services said the new policy would further discourage traders and other small business owners from participation in the financial inclusion drive of the Federal Government.

The CBN February 10 this year had released a circular to all banks and Other Financial Institutions (OFIs) to apply the increased ATM charges effective from March 1, 2025.

Dr. Olayemi Cardoso, Governor of CBN

John Onojah, Acting Director of the Financial Policy and Regulation Department CBN, stated the banking sector regulator also announced the scrapping of free withdrawals on other banks鈥� ATMs, and introduction of N100 for withdrawals of N20,000.

The Bank, in the circular titled, “Review of ATM transaction fees”, said the move was in response to rising cost and the need to improve efficiency of ATM services in the banking industry.

Onojah noted in the circular: 鈥淭he three free monthly withdrawals allowed for Remote-On-Us (other bank鈥檚 customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply.

“The CBN has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to charges by banks, other financial institutions and Non-Bank Financial Institutions 2020 (the Guide).”

Consumers react to ATM fee hike regime

Affected bank customers, however, have condemned the CBN’s recent upward review of ATM transaction fees in the country’s financial ecosystem.

Some of the concerned customers, who spoke on the burning issue Sunday, February 16, 2025, in Abuja, FCT, observed the new policy apparently negated the financial inclusion and cashless policies of CBN, agency report said.

In her reaction to the development, Mrs. Catherine Itoha, a civil servant, said the tax would discourage the unbanked from getting into the financial inclusion net in the Nigerian economy.

Itoha who observed that this method of tax generation was not obtainable in other climes, however, appealed to the banking sector regulator to devise other means of tax instead of discouraging banking.

She quipped: “Is this how they want to encourage cashless policy? This is definitely not good.

“The tariff is too high. This is the reason why, if you go to most bush market, they do not accept transfer.

“The traders will tell you that they do not have bank accounts therefore, you pay so much to withdraw.”

The consumer said: “The other day that I went to a bush market, I used N4,000 to withdraw N90,000 in a Point of Sale (PoS) because they insisted on cash.

“The government should be thinking of how to bring people like those traders into the banking net and not chase them away with charges. It is the masses that are suffering all these charges.”

Speaking on the new CBN’s ATM fees, Mr. Davis Agede, a former banker, regretted that the Bank would introduce a policy and another to clash with the previous one.

Agede reportedly alleged that with the ATM transaction fees increase, the PoS merchant would follow suit soon, and increase their withdrawal fees.

Hajia Kudirat Aminu, a trader in FCT, also disclosed how she now prefers keeping her monies in her home in order to avoid various bank charges.

Aminu explained although she barely used ATM for cash withdrawals, the new regulatory policy would further discourage some of her fellow traders who were small business owners in her area.

She also stated: “I go to the market everyday so I do not need to keep my money in the bank.

“This policy will discourage so many small business owners from using their bank accounts.”

Kayode Are, another concerned bank customer, regretted that all taxes had been reviewed upward in every sector of the West African country’s economy.

Are asked: “Does the government want to kill us with taxes? How will the poor masses survive this?

In her remarks, Miss Catherine Nnaji, a student and bank customer, appealed to CBN to reduce transaction fees charged customers withdrawing money from another bank鈥檚 ATM.

Young Nnaji said the appeal was due to the absence of her bank and its ATM within her place of residence.

The consumer said: “My bank is too far away from where I stay. I usually use other bank鈥檚 ATM to withdraw money.

鈥淭he CBN should pity us because we are students and do not currently have a means of making money.”

Stakeholders express mixed reactions on new ATM fees

Sequel to the CBN circular on new ATM withdrawal charges, Dr. Uju Ogubunka, Chairman of the Bank Customers Association of Nigeria, said the Bank’s new ATM policy is not a bad idea, given the state of the economy but expressed concerns about the rate of increase by the Deposit Money Banks (DMBs) in the country.

Ogubunka explained: 鈥淚t should have been expected. Other places have increased their fees.

“The only thing one can talk about is the extent of the increase. Electricity, telephones, and even the open market have recorded increases in prices.”

He stated: “The issue should not be the increase but the extent of it. Is it reasonable? Is it affordable at this point in time?

鈥淚t is not only banking services that are increasing fees. If you ask me, I will say let鈥檚 move on. Someday, these things will adjust themselves.鈥�

In his comment, Segun Aremu, a financial analyst, however, said the CBN’s regulation on ATM withdrawal fees would negatively impact the financial inclusion campaign of the regulator.

Aremu argued that in Nigeria, there are still a lot of unbanked consumers, noting, “this is more like a discouragement.”

The expert also stated: “We are looking at the masses, who have N10,000 and N20,000, who are going to be mostly affected.

“If you are in an area where there鈥檚 only one bank, you have to bear that extra cost.”

He further said: “What we should be getting now is cheaper costs, not expensive costs of transaction.

鈥淭his will bring more to banks, and more people will be forced to use electronic banking.”

Aremu opined: “I think they want to reduce dependency on cash as well, but at this point in the economy, people still need cash.

“We have not transitioned to mobile banking and such. We are getting there, but I feel like this is coming too early.

“The intentions may be good, but before March 1, when they will implement it, I hope we will see an improvement. Anyway, Nigerians are very adaptable.鈥�

Reacting to the development, Oladele Olowookere, a user of聽 X, wrote: 鈥淲ith the new ATM withdrawal charges aiming to take place on 1st March, 2025, it is obvious FGN and CBN want to cripple every middle-level or low-level income earner to paupers. “These charges will cripple people鈥檚 account balances like crazy. N20,000 na N550 charges.鈥�

Another user, Evuakpo Afoke, reportedly lamented and said: 鈥淭his government is really taking Nigerians for granted.

“After stamp duty, they are now increasing the charges on ATM withdrawals.

“So, they benefit when my money is deposited in my account and want more when I withdraw it. All the while, they want cashless transactions.鈥�

Cash withdrawals at customers’ banks still without charges, says CBN

On the flip side of the new ATM charges for bank customers, the CBN said: “This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.

“Accordingly, banks and other financial institutions are advised to apply the following with effect from March 1, 2025.”

The banking sector regulators noted that customers withdrawing from another institution鈥檚 ATM would be charged.

However, the CBN said customers withdrawing money at the ATMs of their own banks and other financial institutions would not be charged.

The circular stated: “On-Us (customers withdrawing at the ATM of the customer鈥檚 financial institution) in Nigeria, no charge.

“Not-on-Us (withdrawal from another institution鈥檚 ATM) in Nigeria; On-site-ATMs: A charge of N100 per N20, 000 withdrawal.”

The Bank further said: “Off-site ATMs: A charge of N100 plus a surcharge of not more than N500 per N20, 000 withdrawal.

“The income which is an income of the ATM acquirer/deployer, shall be disclosed at point of withdrawal to the consumer.”

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