Bank customers in Nigeria have criticized the recent upward review of Automated Teller Machine (ATM) withdrawal charges by the Central Bank of Nigeria (CBN), stating that the move contradicts the apex bank’s financial inclusion and cashless policies. Many customers argue that the new charges are an additional burden on Nigerians already struggling with rising living costs.
They fear the policy will push more people away from banking services and discourage digital transactions, leading to greater reliance on cash-based payments. Some customers, in an interview with NAN, described the new charges as exploitative, especially for low-income earners and small business owners. They questioned how the policy aligns with the government’s financial inclusion goals, which aim to encourage more Nigerians to adopt banking services.
Catherine Itoha, civil servants lamented that the new charges could further discourage financial inclusion, particularly among informal market traders who already prefer cash transactions.
“Is this how they want to encourage the cashless policy? The tariff is too high. Many rural market traders do not have bank accounts because of such charges,” she said.
Sharing her experience, Itoha explained how she had to spend N4,000 to withdraw N90,000 at a Point of Sale (PoS) terminal due to traders’ insistence on cash payments.
Similarly, a former banker, Davis Agede, argued that the policy contradicts previous initiatives aimed at promoting digital transactions. He added that PoS operators would likely increase their withdrawal charges, further burdening customers.
A trader, Hajia Kudirat Aminu, also criticized the decision, noting that the rising bank charges have forced her to keep cash at home rather than deposit it in a bank.
“This policy will discourage so many small business owners from using their bank accounts,” she said.
Likewise, Kayode Are, another bank customer, decried the continuous increase in charges across different sectors, saying, “Does the government want to kill us with taxes? How will the poor masses survive?”
For Catherine Nnaji, a student, the increased withdrawal fees pose additional financial hardship. She called on the CBN to reconsider its decision, as many students rely on ATMs of other banks due to the absence of their bank’s ATM in certain locations.
The CBN, in a circular released on February 10, 2025, instructed all banks and financial institutions to implement the new withdrawal charges effective March 1, 2025.
According to the apex bank, the decision to increase ATM charges is driven by the rising cost of financial services and the need to enhance the efficiency of ATM operations.
Customers withdrawing from their bank’s ATM (On-Us transactions) will not be charged. Customers using another bank’s ATM (Not-on-Us transactions) will be charged N100 per N20,000 withdrawal at on-site ATMs. Withdrawals from off-site ATMs will attract an additional surcharge of up to N500 per N20,000 withdrawal. The charges will be disclosed to customers at the point of withdrawal.
