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Bank customers are expressing dissatisfaction as the Central Bank of Nigeria’s (CBN) new withdrawal charges took effect on Saturday, March 1, 2025.
Under the revised fee structure, commercial banks are now charging customers N100 per N20,000 withdrawal from on-site Automated Teller Machines (ATMs) and N600 for off-site ATM withdrawals.
The CBN issued a circular on February 10, 2025, to all banks and financial institutions, announcing the review of ATM transaction fees. According to the new guidelines, withdrawals from one’s own bank ATMs will remain free of charge.
However, customers withdrawing N20,000 or less from another bank’s ATM will incur a N100 fee per transaction. The CBN cited rising costs and the need to improve the efficiency of ATM services in the banking industry as reasons for the new charges.
On February 28, one day before the new policy took effect, Zenith Bank notified its customers via email, informing them of the updated fees. When this writer used a First Bank ATM card to withdraw N10,000 from an Access Bank ATM, he was charged the new N100 fee.
Customer Reactions
Many Nigerians find the withdrawal fee increase burdensome, especially amid financial struggles in an already harsh economy.
Halima, a customer, expressed her disappointment, saying, “I was charged N600 for a N15,000 withdrawal at a shopping mall. I needed cash to complete payment for some items I bought.”
John Showemimo, another customer, was frustrated by the lack of better alternatives.
“Using a Point-of-Sale (POS) agent will attract even higher fees. If I want to use POS to withdraw N20,000, I will be charged N500. If I go to my bank ATM, I will pay transport fare of N600 to and from, what better alternative do I have?”
Iya Bode, a trader who uses a feature phone and an ATM card, lamented the increase in charges. “I use my ATM card more than five times daily because of the nature of my trade. POS people charge too much, so I usually use bank ATMs. Now, they have increased their withdrawal fee. This is too much. How much am I making from this trade?”
Expert Opinions
A bank staff member who works with the operations department and is also an ATM custodian stated that since the new charges took effect on March 1, there has been no noticeable reduction in the number of people using the ATM.
“Customers are complaining about the new withdrawal charge, but they still come to use our ATM. Our machines are dispensing cash; we load money whenever we have it. The moves made by the CBN to reduce cash flows in the economy aim to reduce criminal activities in society; it’s a good move,” she said.
Daniel, a staff member of one of the tier 1 banks, anticipates a reduction in the number of people using the ATM. He said customers will most likely shift their attention towards PoS agents for cash withdrawals.
“People will prefer to use the PoS agent than going to the bank ATM, especially customers withdrawing N10,000 and below. They will rather avoid the stress of going to a distance, standing in line, and the possibility of their ATM cards getting stuck inside the machine.”
Court Case
While Nigerians adjust to the new charges, the CBN has been sued by the Socio-Economic Rights and Accountability Project (SERAP) over the new withdrawal charges. SERAP filed a lawsuit against the CBN, seeking to reverse the “patently unlawful, unfair, and unjust increase in ATM transaction fees.”
In an open letter signed by SERAP Deputy Director Kolawole Oluwadare, the organization has urged President Bola Tinubu to direct the Governor of the CBN, Olayemi Cardoso, to suspend the implementation of the increased ATM fees pending the hearing and determination of the lawsuit.
“The CBN has the responsibility to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do not undermine the rule of law or the Court. Implementing the increased ATM fees while the lawsuit is pending would make a mockery of the judicial process and the rule of law,” SERAP stated.
What You Should Know
- The CBN encouraged consumers who are denied the right to withdraw up to N20,000 per transaction to file a complaint with the CBN via cpd@cbn.gov.ng.
- On-site ATMs are located within or directly affiliated with a bank branch, while off-site ATMs are found in locations such as shopping malls, fuel stations, or other public areas.
- Banks and financial institutions are not allowed to charge more than the N500 per N20,000 surcharge for an off-site ATM withdrawal, as prescribed in the earlier circular.
- For withdrawals outside Nigeria, the CBN stated that banks will apply a cost recovery fee, meaning the exact charge imposed by the international ATM acquirer will be passed on to the customer.