Banks in Nigeria have rolled out new ATM fees following CBN directives, leading to discontent among customers who feel the increases unjustly burden the poor. Customers report that the cost of using ATMs now outweighs the benefits, with some expressing that withdrawals through PoS agents are cheaper. Notably, banks like GTB have eliminated free monthly ATM withdrawals, compounding frustrations over increased banking charges.
Banks in Nigeria have recently implemented new Automated Teller Machine (ATM) fees following a directive from the Central Bank of Nigeria (CBN). Customers across various banks are expressing their frustrations with the fee increases, stating that the changes disproportionately impact low-income individuals. One customer, Luke Abudu, criticized the additional N100 charge for a withdrawal of N20,000, emphasizing the burden it places on small business owners.
Another customer, Victoria Adejo, noted that using a Point of Sale (PoS) agent is now often more affordable than withdrawing from ATMs. She remarked on the government’s lack of awareness regarding the people’s struggles, questioning the CBN’s justification for the fee increase as a measure against rising costs. Adejo highlighted the significant profits banks make, suggesting a disconnect between policy decisions and customer experiences.
Nurudeen Ehimotor, another customer, echoed similar sentiments, indicating that banks may be incentivizing ATM use to boost their revenue at the expense of customer convenience. He urged financial institutions to reconsider their charging practices. On February 10, the CBN issued a circular mandating these fee changes, effective March 1, which includes detailed charges for ATM withdrawals.
The CBN’s guidelines stipulate that “On-Us” transactions (withdrawals from one’s own bank’s ATM) will remain fee-free, while “Not-on-Us” transactions (withdrawals from another bank’s ATM) will incur charges. Specifically, a fee of N100 will apply for withdrawals up to N20,000 from an off-site ATM, potentially grossly impacting customers using multiple bank services. Banks like GTB announced earlier that they would be eliminating free monthly withdrawals, adding to concerns over rising banking costs.
The recent introduction of ATM fees in Nigeria has raised significant concerns among bank customers, who argue that such policies exacerbate financial hardships for low-income individuals. Customer testimonies reveal dissatisfaction with both fee structures and the perceived lack of empathy from banks and the government. The CBN’s justification for these fees as a response to rising operational costs has not sufficed to assuage customer frustrations, with many calling for a reevaluation of these policies to mitigate their impact on the population.
Original Source: gazettengr.com
