March 5, 2025
Bank customers have expressed dissatisfaction with the Central Bank of Nigeria’s, CBN, new ATM withdrawal charges which took effect on Saturday, March 1, 2025.
Under the new fee structure, commercial banks now charge customers N100 per N20,000 withdrawal from on-site Automated Teller Machines, ATMs and N600 for off-site ATM withdrawals.
On February 10, 2025 the CBN had issued a circular to all banks and financial institutions, announcing the review of ATM transaction fees, withdrawals from one’s own bank ATMs will remain free of charge, according to the new guidelines.
In the new review, customers withdrawing N20,000 or less from another bank’s ATM will incur a N100 fee per transaction. The apex bank, cited rising costs and the need to improve the efficiency of ATM services in the banking industry as reasons for the new charges.
READ MORE; SERAP Drags CBN To Court Over ATM Fee Hike.
Zenith Bank had a day before it took effect, notified its customers via email, informing them of the updated fees. When a bank customer used a First Bank ATM card to withdraw N10,000 from an Access Bank ATM, the new N100 fee was charged.
Many Nigerians have described the new withdrawal fee increase as one burden too many, amid the already harsh economy.
Dauda, a customer, expressed his disappointment, saying, “I was charged N600 for a N17,000 withdrawal at a shopping mall where needed cash to complete payment for my shopping”
Another customer, expressed frustration due to lack of better alternatives.
Now, “Using a Point-of-Sale (POS) agent will attract even higher fees. If one wanted to use POS to withdraw N20,000, one would be charged N500. If one goes to his/her bank ATM, one would incur transport fare of about N600 to and from, that leaves one with no better alternative”
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?”
However, 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, a situation a customer said was because there’s no alternative.
“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.
READ MORE; CBN Announces New ATM Transaction Charges
The Socio-Economic Rights and Accountability Project, SERAP, had sued CBN over the new withdrawal charges. SERAP filed a lawsuit against the CBN, seeking to reverse of what it described as “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.
