CBN Defends Increase in ATM Charges; States Reasons.

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The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has defended the recent increase in ATM charges, arguing that the measure is necessary to improve access to cash, incentivise banks to provide better services, and support the CBN’s financial inclusion agenda.

Speaking to journalists after a recent Monetary Policy Committee (MPC) meeting, Cardoso addressed concerns that the increased charges represent another burden on citizens. “The banks are interested and need to be incentivised to ensure that there’s regular access for their ATMs, that people can come in, take money, and go out,” he stated.

Cardoso explained that the decision to adjust ATM charges stemmed from the cash shortages experienced during the Christmas period. The CBN convened daily meetings to find solutions to the crisis, recognising that banks needed incentives to ensure consistent cash availability at ATMs.

While acknowledging improvements in the situation, Cardoso noted that “a lot is not enough,” demanding a seamless and perfectly functioning system. He argued that certain costs need to be absorbed to achieve this goal, and the adjusted ATM charges fall into this category.

The governor reassured the public that the increased charges only apply to withdrawals from ATMs belonging to “other banks.”. Withdrawals from one’s own bank’s ATMs will remain free of charge. Cardoso also suggested a workaround for frequent users of other banks’ ATMs, advising them to obtain cards from those banks to avoid the charges. “If you go to another bank where you go on a regular basis and you feel this is where you want to be, you can actually go there and apply for a card also, and that will not cost you anything,” he clarified.

The CBN Governor expressed confidence that the new measure will lead to a greater proliferation of ATMs, making access to cash more seamless for the public. He also believes it will discourage exploitative cash disbursement practices that emerged during the cash shortages. “It will literally shut that particular area out of business over a period of time,” he predicted.

The CBN Governor framed the increased charges as a necessary investment in the future, enabling banks to maintain and replenish their ATMs more effectively. This will lead to a more reliable and accessible cash distribution network, ensuring seamless access to cash for all Nigerians.¹

By incentivizing banks to improve their ATM services, the CBN aims to create a more efficient and accessible financial system for everyone. The governor’s explanation aims to address public concerns by highlighting the long-term benefits of the policy.

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