The new Automated Teller Machine (ATM) withdrawal charges introduced by the Central Bank of Nigeria (CBN) officially took effect on Saturday, March 1, 2025, sparking widespread concerns among bank customers across the country. Many Nigerians expressed frustration over the financial burden imposed by the policy, particularly in light of ongoing economic hardships.
The new policy, first announced by the apex bank on February 11, mandates a N100 charge for cash withdrawals from ATMs of other banks within the same premises. Additionally, customers withdrawing from offsite ATMs belonging to different banks will incur a N450 surcharge. This move has generated significant debate, with many questioning its necessity.
The CBN clarified that these charges apply only when customers use ATMs outside their own bank’s network. It assured the public that withdrawals from their own bank’s machines remain free of charge. The policy, according to the central bank, aims to regulate cash circulation and promote digital banking.
Reports from major cities, including Abuja and Lagos, indicate that banks have already started implementing the directive. Many bank users lamented that the charges would further strain their finances, especially amid rising inflation. Some customers described the move as punitive, arguing that access to their own money should not come at an additional cost.
Confirming the enforcement of the new charges, Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, acknowledged the difficulties it would create for Nigerians. “The ATM withdrawal charges, as announced by the CBN, have commenced. Definitely, this is another burden Nigerians have to contend with,” Ogunbunka stated.
While the CBN maintains that the policy will encourage cashless transactions, financial analysts warn that it could have unintended consequences. Some experts believe that the additional fees may discourage cash transactions and push more Nigerians toward alternative financial services, such as fintech apps and mobile money platforms.
Critics argue that the policy disproportionately affects low-income earners who rely heavily on ATM withdrawals for daily transactions. Many have called on the government to reconsider the charges, emphasizing that a large percentage of Nigerians still depend on cash for their everyday needs.
As public reactions continue to pour in, advocacy groups and financial experts are urging the CBN to explore alternative ways of promoting digital banking without imposing additional costs on citizens. Some have suggested expanding banking infrastructure and improving financial literacy to encourage a gradual transition to a cashless economy.
For now, however, Nigerian bank customers will have to adjust to the new charges, even as they continue to express concerns about the rising cost of accessing their own funds.
