Public Outcry as CBN Increases ATM Withdrawal Charges
Nigerians are facing another financial burden as the Central Bank of Nigeria (CBN) implements new charges for cash withdrawals from Automatic Teller Machines (ATMs). The policy, set to take effect on March 1, 2025, has raised concerns among citizens already struggling with rising costs of essential services.
Under the new directive, withdrawals from an individual’s own bank’s ATMs will remain free. However, using another bank’s ATM for on-site withdrawals (within the bank’s premises) will now attract a charge of N100 per N20,000 withdrawn. For off-site ATMs located in public areas such as malls and airports, an additional surcharge of up to N500 per transaction will apply, meaning customers could pay as much as N600 to withdraw N20,000. Charges on international withdrawals will vary based on the rates set by global transaction processors.
CBN Governor Olayemi Cardoso defended the policy, stating that it aims to incentivize banks to maintain cash availability at ATMs and expand their networks. He argued that the new charges would discourage the exploitation of cash withdrawal services and enhance financial efficiency.
“If you withdraw from your bank’s ATM, there is no charge. If you frequently use another bank’s ATM, you can get a card from that bank to avoid extra fees. This policy will encourage the expansion of ATMs and improve access to cash,” Cardoso explained.
However, many Nigerians remain skeptical, pointing to past policies that increased costs without improving services. Critics argue that instead of addressing persistent issues such as cash shortages, poor network connectivity, and malfunctioning ATMs, the CBN is shifting the financial burden onto customers.
The new charges are expected to significantly impact Point-of-Sale (POS) operators, who provide essential banking services, especially in rural areas. With increased transaction costs, POS agents may raise their fees, leading to higher costs for goods and services as businesses adjust to recover expenses.
The policy could also lead to a resurgence of long queues in banking halls, as customers attempt to avoid excessive withdrawal fees. This development contradicts efforts to promote a cashless economy and could force many individuals, especially those in underserved areas, to revert to cash transactions.
Amid growing public concern, financial experts warn that the policy may fail to achieve its intended goals unless banks significantly improve their services. Many are calling for a reconsideration of the decision, urging regulators to focus on enhancing banking infrastructure rather than imposing additional costs on consumers.
There is widespread demand for the suspension of the policy until banks can guarantee reliable and accessible ATM services. Additionally, clear operational standards should be set for ATM providers to ensure that customers are not penalized for inefficiencies in thefinancial system.
