New CBN ATM Charges: Nigerians Cry Out As Banking Halls Set For A Comeback (See Highlight)

New CBN ATM Charges: Nigerians Cry Out As Banking Halls Set For A Comeback (See Highlight)

The Central Bank of Nigeria’s (CBN) recent decision to impose fees on cash withdrawals from ATMs of other banks has sparked mixed reactions among Nigerians.

Since the introduction of ATMs in Nigeria in the early 1990s, they have transformed cash withdrawals by providing 24/7 access to funds, reducing the need to visit bank halls. However, this convenience is now under threat due to new withdrawal charges set to take effect from March 1, 2025……..READ MORE 

According to a CBN circular issued on February 11, customers withdrawing cash from other banks’ ATMs will be charged ₦100 per ₦20,000 transaction, with additional fees of up to ₦500 for off-site ATMs.

Despite public backlash over the removal of three free monthly withdrawals previously allowed, CBN insists the new policy benefits both banks and customers.

CBN’s Acting Director of Financial Policy and Regulation, John Onojah, speaking on Channels Television’s Sunrise program, assured Nigerians that ATM cash shortages would be addressed under the new regulations. He explained that the policy is aimed at helping banks recover the high costs of ATM deployment and maintenance.

The Socio-Economic Rights and Accountability Project (SERAP) has condemned the policy as unfair and unlawful. In a statement issued by its Deputy Director, Kolawole Oluwadare, the organization urged CBN Governor Olayemi Cardoso to reverse the policy immediately or face legal action.

SERAP argues that the withdrawal charges will worsen the financial hardship of Nigerians, especially low-income earners. The organization also claims that the policy contradicts Section 42(1)(a) of the CBN Act 2007, which mandates the central bank to ensure reasonable financial services for the public in the national interest.

A senior manager at a leading commercial bank, identified as Seyi, described the CBN policy as a positive step toward reducing cash dependency.

“The policy provides options. If you don’t want to use ATMs, you can withdraw cash inside the bank during working hours or rely on online banking. Nigerians need to de-emphasize cash transactions because digital payment alternatives are available,” he stated.

He further emphasized that Nigerians should adopt cashless payment methods for transactions such as rent, school fees, and shopping.

With this new policy in place, the days of easy cash withdrawals from any ATM may be coming to an end. As some bank ATMs remain empty, Nigerians may be left with no choice but to pay extra fees at POS terminals.