NIGERIANS HAVE TAKEN to social media to express their frustration over the Central Bank of Nigeria’s (CBN) newly introduced charges on Automated Teller Machine (ATM) withdrawals.
The policy, which takes effect from 1 March, will see customers paying higher fees for cash withdrawals, particularly at off-site ATMs located in shopping centres, airports, and other standalone cash points.
The Explainer gathered that under the revised charges, customers using ATMs outside their bank’s premises will pay N100 per N20,000 withdrawal. Withdrawals at off-site locations will incur an additional surcharge of up to N500 per N20,000, bringing the total possible charge to N600.
Furthermore, the CBN has scrapped the three free monthly withdrawals previously allowed for customers using ATMs belonging to other banks. Now, every transaction at another bank’s ATM will attract a fee from the first withdrawal.
For international ATM transactions, the new guideline mandates banks to pass on the exact cost imposed by foreign acquirers to customers.
Nigerians Voice Frustration Over Rising Financial Burdens
The announcement has sparked widespread criticism, with many Nigerians questioning the timing of the policy amid rising economic hardship. The Explainer noted that social media platforms have been flooded with reactions, with many accusing the CBN of prioritising revenue generation over citizens’ welfare.
One user, @velele17, sarcastically commented, “Thank you, dirty bat. Here are a few more things that Nigerians use daily that need steeper taxes: pure water, bottled water, red oil, rice, and bread. I know these prices have gone up since you stole your way into office, bought a jet for yourself, cars for yourself and your wife, and did some expensive mansion renovations to the tune of tens of billions of naira, but please could you tax these five items just a bit more?”
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Another user, @Onuoramic93102, expressed anger over what they described as excessive financial levies on Nigerians. “The CBN has become a rogue enterprise. It has never cared about the interests of the people. It keeps imposing geometrical commissions and taxes through commercial banks. The banks in Nigeria swindle customers out of billions of naira, all overseen by the CBN.”
Concerns were also raised about the policy’s impact on the lower-income population, with some suggesting that the government should intervene. @CaringtonOjei said, “This is where the government is supposed to prove its empathy for poor citizens. It should pay a subsidy on such charges to ease the pains and suffering of Nigerians.”
For @Jindu7, the new ATM charges are yet another burden on Nigerians who are already struggling with economic difficulties. “It’s one increase or the other on a daily basis in Nigeria. Increased PMS prices, VAT, taxes, import duties, electricity, call/data rates, and bank charges of varying kinds. When would the baby steps of hardship be over?”
Similarly, @faruq2020 criticised the CBN’s priorities, saying, “The CBN is very good when it comes to implementing new taxes and charges on Nigerians, but they have done nothing in respect of the value of the naira.”
The Explainer gathered that Nigerian banks have been grappling with mounting operational expenses, including infrastructure maintenance and security, factors cited by the CBN as reasons for reviewing ATM charges.
A CBN circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, stated, “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020.”
The bank explained that the adjustment was necessary to accelerate ATM deployment and ensure appropriate pricing for the service.
However, critics argue that the policy could discourage ATM usage, especially in rural and semi-urban areas where digital payment adoption remains low. The Explainer gathered that cash remains the dominant mode of transaction in many parts of Nigeria, and increasing withdrawal costs could push more people towards informal cash transactions, weakening financial inclusion efforts.
