CBN Scraps Free ATM Withdrawals, Sparks Customer Reactions.

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The Central Bank of Nigeria (CBN) has scrapped the three free monthly ATM withdrawals previously allowed for customers using other banks’ ATMs. According to a circular titled ‘Review of Automated Teller Machine Transaction Fees,’ customers will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.

The CBN attributed the review to rising costs and the need to enhance ATM operations’ efficiency. “In response to rising costs and the need to improve the 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 Guide),” the circular read.

The Chairman of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, expressed concerns about the rate of increase, saying, “It should have been expected. Other places have increased their fees. The only thing one can talk about is the extent of the increase… The issue should not be the increase but the extent of it. Is it reasonable? Is it affordable at this point in time?”

However, a financial analyst, Segun Aremu, believes this move will negatively impact the financial inclusion campaign of the CBN. “In Nigeria, there are still a lot of people unbanked; this is more like a discouragement… What we should be getting now is cheaper costs, not expensive costs of transaction,” he said.

The new charges, which take effect on March 1, 2025, have sparked reactions from bank customers. Oladele Olowookere, a user on social media platform X, wrote, “With the new ATM withdrawal charges… it is obvious FGN and CBN want to cripple every middle-level or low-level income earner to paupers.”

Here’s a breakdown of the new charges:

– *Withdrawals from a customer’s own bank ATM*: Remain free

– *Withdrawals from another bank’s ATM (on-site)*: N100 per N20,000 withdrawal

– *Withdrawals from another bank’s ATM (off-site)*: N100 per N20,000 withdrawal + surcharge of up to N500

– *International ATM withdrawals*: charged at the exact rate set by the international acquirer.

The new charges have sparked widespread criticism from bank customers, with many taking to social media to express their dissatisfaction. Evuakpo Afoke, a social media user, lamented, “This government is really taking Nigerians for granted. After stamp duty, they are now increasing the charges on ATM withdrawals. So, they benefit when my money is deposited in my account and want more when I withdraw it. All the while, they want cashless transactions.”

Mega Mixer, expressing bewilderment, stated, “How do banks in countries where their customers don’t have to pay through their noses to withdraw or transfer their own money make a profit and are still able to offer better services than all Nigerian banks combined?”

Another user, Sunday Truck, said, “New fees for ATM transactions? That’s going to be frustrating for a lot of people.”

The CBN’s decision to scrap the free ATM withdrawals and introduce new charges has raised concerns about the impact on low-income earners and those in rural areas who may not have access to electronic banking services.

As the implementation date of March 1, 2025, approaches, bank customers are bracing themselves for the increased charges, while critics continue to question the timing and rationale behind the CBN’s decision.

Please don’t forget to “allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.