Checkout Magazine has learnt that banks are loading their ATMs with cash as they commenced charging N100 for transactions on March 1.
The Central Bank released the revised ATM transaction fees in a circular dated February 10, 2025. Under the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge.
However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer. CBN also clarified that Nigerians withdrawing less than N20,000 from another bank’s ATM will still be charged a fee of N100 per transaction.
On Sunday afternoon, when reporters monitored the banks in Lagos, it was observed that banks loaded their ATMs with cash, thus limiting the chances of their customers using another bank’s ATM and incurring the extra charge.
All the bank branches visited had cash, and the branches had at least four ATM points. Meanwhile, some customers are lamenting the extra cost they have to pay for ATM use.
A bank customer, Eze Chinonso, lamented that it was one more inconvenience to deal with on his meagre salary from security work.
“This is another cost I must pay to use my money. The cost of data has gone up and other costs as well. Honestly, this is squeezing an already stressed pocket,” he lamented.
A social media user on the X platform, Opel Nnenna (@opelnnenna3), also bemoaned the charges and shared an email from a fintech firm on the charges, which partly read, “In line with the CBN’s recent review of ATM withdrawal fees, you will be charged the following fees by other banks when you make ATM withdrawals with your Kuda Card from this Saturday, March 1, 2025: Fee for withdrawals at ATMs on any bank’s premises. For every withdrawal of N20,000 or less that you make at an ATM located on any bank’s premises, the bank that owns the ATM will charge you a fee of N100. For withdrawals that exceed N20,000 within a day, you’ll be charged an additional fee of N100 for every extra N20,000 or less that you withdraw.”
Opel said, “I’m deeply concerned about the increasing banking charges imposed on Nigerian citizens by the Central Bank of Nigeria and the government. It seems unfair that citizens are being charged multiple fees. The economic hardship is becoming unbearable for most Nigerians.
“If the current administration and CBN leadership cannot effectively manage the country’s financial system in a way that serves the citizens, perhaps it’s time for new leadership with fresh perspectives. The CBN Governor should understand that citizens are suffering from these policies. These excessive charges are particularly burdensome, given the limited funds many Nigerians have in their accounts.”
It is instructive to note that fintechs that have issued millions of cards in Nigeria, according to Statista, do not operate ATMs and do not stand to benefit from the N100 ATM transaction charges.
To avoid the ATM charges, the Central Bank suggested using only your bank’s ATM or other payment channels.
“You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees. Additionally, limiting your use of off-site ATMs is advisable to minimise the surcharge.
Furthermore, consumers can explore other payment channels such as mobile apps, POS devices for payments, etc.,” CBN said in its Frequently Asked Questions segment on the development.
Meanwhile, both the Trade Union Congress and the Socio-Economic Rights and Accountability Project have called for a suspension of the charges.
