The Central Bank of Nigeria is set to implement new ATM withdrawal charges on March 1, 2025. Customers will be charged N100 for withdrawals from another bank’s ATM, with additional surcharges for off-site machines. These changes are driven by rising costs in banking operations and threaten financial inclusion in a struggling economy. Public outcry against increasing charges highlights the need for a reassessment of banking policies to support consumers.
On February 10, 2025, the Central Bank of Nigeria (CBN) announced a revision to Automated Teller Machine (ATM) withdrawal charges effective from March 1, 2025. Under the new regulations, customers will incur charges for using other banks’ ATMs, ending the allowance for three free monthly withdrawals previously provided. Charges will be standardized as N100 for every N20,000 withdrawn from another bank’s ATM, creating an added burden on customers.
While bank ATMs will remain free for withdrawals, users of off-site ATMs (located outside bank premises) can expect an additional surcharge of up to N500 per transaction, in addition to the base fee. This move is intended to promote ATM deployment while ensuring that banks apply appropriate transaction charges.
The CBN’s policy revision comes in response to rising operational costs and aims to enhance efficiency in ATM service delivery. As a result, customers frequently using other banks’ ATMs will face higher transaction costs, potentially leading to a shift towards digital banking methods to avoid fees.
Following this announcement, many Nigerians expressed concern over the rising cost of banking amidst economic hardship. The additional charges, particularly for those withdrawing lesser amounts, contribute to the financial strain faced by the average consumer.
Existing banking charges include monthly account maintenance fees, interbank transfer fees, and charges for SMS alerts. With various deductions significantly impacting people’s finances, many question the necessity and fairness of these fees.
Public figures have voiced their opposition, with former senator Shehu Sani criticizing the removal of free withdrawals for customers at other banks. Financial analysts assert that these policies could further discourage banking in favor of informal, unregulated financial solutions.
Consumers are now advised to rely more on their bank’s ATMs to mitigate transaction fees. Moreover, the CBN’s call for financial inclusion faces challenges as rising charges could push individuals away from utilizing formal banking services, particularly affecting those in rural areas.
A growing number of consumer rights advocates are urging the government and banking institutions to review these policies, emphasizing that financial burdens should not inhibit access to banking services. The cumulative effect of ongoing charges may discourage financial participation, conflicting with the CBN’s goals for a cashless economy.
In summary, the CBN’s directives may have broad implications not only for individuals but also for small businesses and the informal economy. The revised ATM charges illustrate the ongoing struggle for Nigerians to balance necessary banking services against increasingly prohibitive costs, warranting a careful reassessment of financial policies that impact ordinary citizens.
The Central Bank of Nigeria’s revision of ATM withdrawal charges significantly affects customer banking behaviors and expenses. The introduction of fees for interbank ATM usage and the removal of free withdrawal options places additional financial strain on Nigerians, prompting discussions on the balance between operational costs for banks and consumer accessibility. As these policies unfold, calls for a review of banking fees intensify, reflecting the need for a more inclusive financial environment that accommodates the economic realities faced by individuals.
Original Source: punchng.com
