The Central Bank of Nigeria (CBN) implements a revised ATM withdrawal fee structure, sparking concerns among bank customers. Effective March 1, 2025, commercial banks now charge N100 per N20,000 withdrawal from ATMs within their premises and N600 for withdrawals from off-site ATMs.
The policy follows a circular issued by the CBN on February 10, 2025, informing banks and financial institutions of the updated transaction fees. While withdrawals from an account holder’s bank remain free, customers using other banks’ ATMs now face additional charges. The CBN cites rising operational costs and the need to improve ATM service efficiency as reasons for the adjustment.
Many Nigerians express frustration over the new charges, particularly in light of ongoing economic difficulties.
Halima, a customer, shares her experience: “I withdrew N15,000 from an ATM at a shopping mall and was charged N600. I needed the cash urgently, and this charge is too high.”
Similarly, John Showemimo highlights the difficulty of finding cost-effective alternatives. “POS agents charge even more. Withdrawing N20,000 via POS costs N500, and traveling to my bank’s ATM costs me N600 in transport. What other options do I have?”
For traders like Iya Bode, who rely on ATMs for frequent transactions, the new charges pose a significant burden. “I use my ATM card multiple times daily for my business. POS agents charge too much, so I prefer bank ATMs. Now, even banks are increasing fees. This is unfair.”
A bank operations officer and ATM custodian notes that, despite complaints, ATM usage remains high. “Customers are unhappy with the charges but continue using our ATMs. The policy aims to reduce cash flow in the economy and curb financial crimes,” she explains.
However, a staff member from a Tier 1 bank predicts a shift in customer behavior. “People will likely use POS agents instead of traveling to a bank ATM, especially for withdrawals of N10,000 and below. The convenience of POS outweighs the stress of long queues and potential ATM malfunctions.”
The Socio-Economic Rights and Accountability Project (SERAP) takes legal action against the CBN, arguing that the increased withdrawal fees are unlawful and unfair. The organization urges President Bola Tinubu to instruct CBN Governor Olayemi Cardoso to suspend the policy pending court proceedings.
“Implementing these charges while the lawsuit is ongoing undermines the rule of law,” SERAP states in an open letter signed by Deputy Director Kolawole Oluwadare.
Key Takeaways for Customers
- Customers withdrawing up to N20,000 per transaction from ATMs outside their bank now incur charges.
- On-site ATMs (within bank premises) charge lower fees than off-site ATMs (in public locations).
- Banks are restricted from charging more than N500 per N20,000 withdrawal from off-site ATMs.
- For international withdrawals, banks pass on the exact fee imposed by the foreign ATM operator.
- Customers facing issues with ATM withdrawals can report complaints to the CBN at cpd@cbn.gov.ng.
As Nigerians adjust to these new charges, many continue to debate the policy’s impact on daily banking transactions and financial accessibility.
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