The Central Bank of Nigeria (CBN) has introduced new ATM withdrawal charges, requiring customers to pay ₦100 per ₦20,000 withdrawn from other banks' ATMs. Off-site ATMs will incur an additional ₦500 surcharge. The policy, effective March 1, 2025, aims to ensure cash availability while helping banks recover costs.
The Central Bank of Nigeria (CBN) has defended its recent policy imposing charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than customers' own, stating that it benefits both financial institutions and their clients.
John Onojah, Acting Director of the Financial Policy and Regulation Department, explained that the initiative aims to ensure consistent cash availability at ATMs while enabling banks to recover operational costs. He emphasized that customers would always have access to at least ₦20,000 per transaction at ATMs.
The new policy, set to take effect on March 1, 2025, introduces a ₦100 charge per ₦20,000 withdrawn from an ATM not belonging to the customer’s bank. Additionally, for off-site ATMs—machines located in places like malls and restaurants—an extra ₦500 surcharge per ₦20,000 withdrawal will apply.
Onojah clarified that customers would not face additional fees when using ATMs operated by their banks. He also reassured Nigerians that the policy would improve access to cash, particularly in remote areas, by encouraging banks to install more machines despite the high deployment costs.
The CBN’s decision has sparked debate, with some Nigerians expressing concern over the impact on cash access, while others believe it could lead to improved banking services. The apex bank insists that the charges strike a balance between sustaining ATM availability and maintaining financial institutions’ operational efficiency.
