Nigerians have voiced strong opposition to the Central Bank of Nigeria’s (CBN) newly implemented ATM withdrawal charges, which took effect on Saturday, March 1, 2025. The revised fee structure, which eliminates previously allowed free transactions, has sparked widespread dissatisfaction among bank customers already grappling with economic hardships.
According to the new policy, customers withdrawing money from their bank’s own ATMs will not incur any charges. This measure aims to encourage customers to use their bank’s ATM infrastructure, reducing reliance on third-party machines.
However, for “Not-on-Us Transactions” at on-site ATMs—those located within or directly affiliated with a bank branch—customers will now be charged N100 per N20,000 withdrawal. This fee applies regardless of the amount withdrawn, meaning even transactions below N20,000 will still attract the N100 charge.
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Additionally, withdrawals from off-site ATMs, such as those in shopping malls, fuel stations, and other public areas, come at a higher cost. Customers will pay N100 per N20,000 withdrawn, along with an additional surcharge of up to N500, bringing the total fee to a maximum of N600 per transaction. The surcharge is intended as compensation for the ATM deployer or acquirer and must be transparently disclosed to customers at the time of withdrawal.
For international withdrawals, customers will be charged the exact fee imposed by the international ATM acquirer. This follows a cost-recovery model, ensuring that banks and financial institutions recover the expenses associated with cross-border transactions.
The CBN, in a circular issued on February 10, 2025, and signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department, stated that these adjustments were necessary to cover rising operational costs and enhance ATM service efficiency. The regulator also emphasized that the policy aligns with its broader strategy to promote a cashless economy by encouraging digital banking alternatives.
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Despite these justifications, the new charges have been met with frustration from the public, particularly low-income earners, small business owners, and informal traders who rely on cash transactions. Many customers lament the removal of the previous policy that allowed three free withdrawals per month from other banks’ ATMs, arguing that the revised structure imposes an undue financial burden.
Critics argue that rather than improving access to financial services, the policy could push more people towards cash-based transactions, defeating the CBN’s goal of a cashless economy. Additionally, concerns have been raised about banks potentially restricting ATM withdrawal limits to force multiple transactions, increasing fees for customers.