Banks across Nigeria have begun enforcing new ATM withdrawal fees as directed by the Central Bank of Nigeria (CBN), prompting mixed reactions from customers. The revised policy, which took effect on March 1, 2025, introduces a charge of N100 for withdrawals made from ATMs that do not belong to a customer’s bank.
Under the new regulations, withdrawals from one’s own bank’s ATM remain free of charge. However, for transactions carried out at another bank’s ATM, a fee of N100 will apply to withdrawals of N20,000 or less at on-site ATMs—machines located within or directly affiliated with bank branches. In contrast, off-site ATMs, found in public spaces like shopping malls and fuel stations, could incur additional charges of up to N500 per transaction.
International withdrawals will be based on cost recovery, meaning customers will bear the exact fee charged by the international acquirer. The CBN clarified that even withdrawals of less than N20,000 at another bank’s ATM will attract the N100 fee.
A survey of several banks in Lagos revealed that financial institutions are ensuring their ATMs are stocked with cash, possibly to prevent customers from resorting to other banks’ ATMs and incurring additional fees. Notices on various ATM screens informed customers about the new charges, requiring confirmation before proceeding with transactions.
Reactions from bank users have been largely negative, with many expressing frustration over the extra financial burden. A Lagos resident, Eze Chinonso, lamented that the charges were another strain on his already limited income. Social media users have also criticized the policy, calling for a reconsideration of rising banking fees amid economic hardships.
As the policy takes full effect, it remains to be seen how it will impact customer banking habits and whether there will be adjustments in response to public outcry.
