Nigerians are once again facing challenges in accessing essential financial services. Just weeks after an increase in telecom tariffs, bank customers are now dealing with higher ATM fees in Nigeria banks following a new directive from the Central Bank of Nigeria (CBN).
The CBN, in a recent circular, announced revised charges for cash withdrawals from Automatic Teller Machines (ATMs), effective from March 1, 2025. According to the apex bank, customers using ATMs operated by their banks will continue to enjoy free withdrawals. However, withdrawals from other bank ATMs will now attract a fee of N100 per N20,000 for onsite ATMs located within bank premises.
For off-site ATMs—those situated outside bank premises in locations such as malls and airports—the charges are even higher. Customers will pay N100 per N20,000 plus an additional surcharge of up to N500 per transaction, meaning withdrawing N20,000 from an off-site ATM of another bank could cost up to N600 per transaction.
Impact of Increased ATM Charges on Nigerians
While the CBN Governor, Olayemi Cardoso, has defended the new ATM charges, stating that the policy aims to improve cash availability and expand ATM networks, many Nigerians remain skeptical. Past increases in service charges, such as higher electricity tariffs and phone service fees, have not resulted in significant improvements in service delivery.
Concerns Over Banking Costs and Cash Availability
Many Nigerians already struggle with multiple bank charges, making account maintenance expensive. The new ATM fees in Nigeria banks will also affect Point of Sale (POS) operators, who have become the primary providers of banking services in urban and rural areas. As POS operators adjust their fees to match the new ATM withdrawal charges, the cost of goods and services is expected to rise, as traders seek to recover transaction expenses.
Additionally, banking halls may witness a resurgence of customers trying to avoid high ATM fees, further straining bank operations. This contradicts the CBN’s cashless policy, which aims to reduce reliance on physical cash transactions. With increased fees, many Nigerians, especially those in rural areas, may opt to use cash for transactions rather than paying unnecessary charges.
Will Higher ATM Fees Solve Banking Issues?
Despite CBN’s assurances, concerns remain about whether these increased fees will lead to more ATMs or better banking services. Nigerian bank customers frequently encounter cash shortages, connectivity issues, and technical glitches when using ATMs. Without addressing these operational problems, the new charges may only serve as an added financial burden rather than a solution.
What are your thoughts on the new ATM fees in Nigeria banks? Do you think this policy will improve banking services, or is it another financial burden for Nigerians? Share your opinions below!