Nigerians will soon pay more to access cash from Automated Teller Machines (ATMs) as the Central Bank of Nigeria (CBN) has introduced new withdrawal charges. The policy eliminates free interbank ATM transactions and imposes additional fees on withdrawals at bank-branch ATMs.
The announcement was made in a circular issued by the acting Director of Financial Policy and Regulation Department, John Onojah. The CBN stated that the review of ATM transaction fees is aimed at addressing rising operational costs and improving efficiency in the banking sector.
Under the new policy, withdrawals from ATMs belonging to a customer’s bank will remain free. However, customers who withdraw cash from ATMs located at bank branches will now be charged ₦100 per ₦20,000 withdrawn.
For those using ATMs of other banks, the new regulation imposes a ₦100 fee per ₦20,000 withdrawal, along with an additional surcharge of up to ₦450. This means that withdrawing from an ATM outside a customer’s bank will now come at a higher cost.
The CBN emphasized that the surcharge will serve as income for the ATM deployer and must be clearly disclosed to customers at the point of withdrawal. “Banks must ensure transparency by informing customers of these charges before transactions are completed,” the circular read.
In addition to domestic withdrawals, international ATM transactions will also attract extra fees. The CBN stated that withdrawals using debit or credit cards abroad will incur a cost-recovery charge equivalent to the exact amount charged by the international acquirer.
Another significant change is the removal of the three free monthly withdrawals previously allowed for customers using ATMs of other banks. Under the new policy, all interbank ATM transactions will now attract charges, regardless of the number of withdrawals.
The policy is set to take effect from March 1, 2025. Financial institutions have been directed to ensure full compliance before the implementation date.
While the CBN maintains that these changes will enhance ATM accessibility and improve banking services, the policy has sparked concerns among Nigerians, many of whom are already facing economic difficulties.
A Lagos-based customer, Adeolu Martins, expressed his frustration over the development. “We are already struggling with high costs of living. Now, withdrawing our own money will become even more expensive,” he said.
Another bank user, Chidinma Okafor, questioned the timing of the policy. “Why introduce more charges when people are struggling? The banks are making profits, but customers are the ones paying more,” she argued.
Financial analysts have also weighed in on the policy, with some noting that while it may help banks cover operational costs, it places an extra burden on everyday Nigerians. “The banking sector is trying to manage expenses, but these charges could discourage cash transactions and push more people towards alternative financial services,” said economist Tunde Balogun.
Despite the backlash, the CBN insists the new charges are necessary to maintain the efficiency of ATMs and ensure banks can sustain cash withdrawal services.
