Nigerian banks have begun implementing the Central Bank of Nigeria’s (CBN) revised ATM transaction charges, which took effect on March 1. Customers withdrawing cash from ATMs of banks other than their own are now charged N100 per withdrawal of N20,000 or less at on-site ATMs, while off-site ATMs attract an additional surcharge of up to N500 per transaction.
CBN, in a circular dated February 10, 2025, clarified that withdrawals from a customer’s own bank ATM remain free. However, for international ATM withdrawals, customers will bear the exact fee applied by the international acquirer.
A survey of banks in Lagos revealed that ATMs were fully stocked with cash, reducing the likelihood of customers resorting to other banks’ machines and incurring extra fees. At multiple locations, including Wema Bank at Barracks Bus Stop, First Bank, Access Bank at Ojuelegba, Zenith Bank near Empire Bus Stop, and Guaranty Trust Bank (GTBank), notices were displayed informing customers of the additional charges.
Some ATMs required users to confirm acceptance of the fee before proceeding with transactions. Guaranty Trust Bank provided a breakdown, stating that customers of other banks withdrawing cash from GTCo ATMs would be charged N100 plus N7.50 in VAT.
The new charges have sparked backlash from labour unions and civil society groups. The Trade Union Congress (TUC) condemned the policy, calling it exploitative and demanding its immediate reversal. In a statement signed by TUC President Festus Osifo and Secretary-General Nuhu Toro, the union criticized the government for imposing additional financial burdens on Nigerians already struggling with economic hardships.
“Every day brings a new burden—higher taxes, rising electricity tariffs, exorbitant call and data charges, and now, increased ATM fees. This government has failed to cushion the effects of its harsh economic policies, and the patience of Nigerians is wearing thin,” the statement read.
Similarly, the Socio-Economic Rights and Accountability Project (SERAP) urged President Bola Tinubu to intervene and direct the CBN to suspend the charges pending a court ruling. The organisation argued that the policy contradicts constitutional provisions and the president’s oath of office to uphold the rule of law.
In response to the public outcry, CBN advised customers to withdraw cash only from their bank’s ATMs to avoid transaction fees. The regulator also encouraged Nigerians to minimise the use of off-site ATMs and explore alternative payment channels such as mobile apps and POS machines.
Meanwhile, fintech companies, which have issued millions of cards in Nigeria, do not operate ATMs and will not benefit from the new charges. As the debate over the policy continues, all eyes are on the government and the courts to determine whether the charges will remain or be reversed.
