CBN scraps free ATM withdrawals, customers protest
Some bank customers have expressed dissatisfaction with the Central Bank of Nigeria’s (CBN) decision to eliminate free withdrawals from other banks’ Automated Teller Machines (ATMs) and to introduce a charge of ₦100 for every ₦20,000 withdrawal.
The concerns arose after the release of a circular by the CBN, signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department. The circular, titled “Review of Automated Teller Machine Transaction Fees,” outlined the removal of the three free monthly withdrawals that were previously allowed for customers using ATMs from other banks.
The new directive states that while withdrawals from a customer’s own bank ATM will remain free, withdrawals from other banks’ ATMs will now incur a charge of ₦100 for every ₦20,000. For withdrawals made at off-site ATMs, an additional surcharge of up to ₦500 will be applied, which will be collected by the ATM provider. International ATM withdrawals will also be charged at the rate set by the international acquirer. The CBN explained that the decision was made in response to rising costs and to improve the efficiency of ATM operations.
READ ALSO: How CBN gov employed 2 female friends, paid them millions as monthly salary
The CBN’s circular also stated that the new fee structure would take effect from March 1, 2025, and aims to accelerate ATM deployment and ensure appropriate charges are applied across the banking sector.
Dr. Uju Ogubunka, Chairman of the Bank Customers Association of Nigeria, commented that while the fee increase was expected, the extent of the increase was a concern. He acknowledged that inflation has led to higher costs in various sectors, but questioned whether the new charges were reasonable and affordable at this time.
However, financial analyst Segun Aremu expressed concerns that the move would negatively affect the CBN’s financial inclusion goals. He pointed out that many Nigerians, especially those in underserved areas, could be discouraged from using banking services due to the additional fees. He also questioned the timing, suggesting that Nigerians still heavily rely on cash transactions, and that the country has not yet fully transitioned to mobile banking.
On social media, users voiced their frustrations. Oladele Olowookere criticized the charges, arguing that they would severely impact middle- and low-income earners. Evuakpo Afoke expressed disappointment, claiming that the government was taking advantage of Nigerians by charging them for withdrawing their own money. Other users, like Mega Mixer, questioned how banks in other countries manage to profit without charging excessive fees, while offering better services than Nigerian banks. Sunday Truck also lamented the new charges, noting that it would be frustrating for many.
This new ATM fee policy, set to take effect in March, has sparked widespread criticism, with many concerned about its potential negative impact on the financial inclusion efforts in Nigeria.
Follow the Neptune Prime channel on WhatsApp:
Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com
 decision to eliminate free withdrawals from other){kind=link}