Nigerians have expressed frustration and dissatisfaction as the Central Bank of Nigeria’s (CBN) revised Automated Teller Machine (ATM) withdrawal charges came into effect on Saturday, March 1, 2025. The new fee structure, announced in a circular on February 10, 2025, imposes a N100 charge for every N20,000 withdrawal from on-site ATMs and N600 for off-site ATM transactions.
Under the new guidelines, withdrawals from a customer’s own bank ATMs remain free. However, withdrawals from another bank’s ATM now incur a N100 fee for transactions of N20,000 or less. The CBN attributed the increase to rising operational costs and the need to enhance the efficiency of ATM services across the banking sector.
Customer Reactions
The new charges have sparked widespread criticism, particularly among Nigerians already grappling with economic challenges. Halima, a bank customer, shared her disappointment after being charged N600 for a N15,000 withdrawal at a shopping mall. “I needed cash to complete payment for some items I bought. This fee is too high,” she lamented.
John Showemimo, another customer, highlighted the lack of viable alternatives. “Using a Point-of-Sale (POS) agent costs even more. If I withdraw N20,000 via POS, I’ll be charged N500. If I go to my bank’s ATM, I’ll spend N600 on transportation. What options do I have?” he asked.
Iya Bode, a trader who relies heavily on ATMs for daily transactions, expressed concern over the increased costs. “I use my ATM card more than five times daily because of my business. POS agents charge too much, so I prefer ATMs. Now, with these new fees, how much profit am I really making?” she questioned.
Expert Perspectives
A bank operations staff member, who also serves as an ATM custodian, noted that despite customer complaints, there has been no significant drop in ATM usage since the new charges took effect. “Customers are unhappy, but they still use the ATMs. We ensure the machines are stocked with cash, and the CBN’s move to reduce cash flow aims to curb criminal activities, which is a positive step,” she explained.
However, Daniel, an employee at a tier-1 bank, predicts a shift in customer behavior. “People withdrawing smaller amounts, like N10,000 or less, may turn to POS agents to avoid the hassle of long queues and the risk of card issues at ATMs,” he said.
Legal Challenge
Amid the public outcry, the Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the CBN, seeking to reverse the “unlawful, unfair, and unjust” increase in ATM fees. In an open letter, SERAP Deputy Director Kolawole Oluwadare urged President Bola Tinubu to direct CBN Governor Olayemi Cardoso to suspend the new charges pending the outcome of the legal challenge.
“Implementing the increased fees while the lawsuit is ongoing undermines the rule of law and the judicial process,” SERAP stated.
Key Details
– The CBN has encouraged customers denied the right to withdraw up to N20,000 per transaction to file complaints via cpd@cbn.gov.ng.
– On-site ATMs are located within or near bank branches, while off-site ATMs are found in public areas like shopping malls and fuel stations.
– Banks are prohibited from charging more than the N500 per N20,000 surcharge for off-site ATM withdrawals, as stipulated in the earlier circular.
– For international withdrawals, banks will apply a cost recovery fee, passing on the exact charge imposed by the foreign ATM acquirer to the customer.
As Nigerians adapt to the new fees, the debate over the fairness and necessity of the charges continues, with many calling for a review to alleviate the financial burden on citizens.
