Financial analysts raise concerns over ATM, EMTL, other bank charges

Financial analysts have raised concerns that the recent implementation of multiple charges on financial transactions could derail Nigeria’s financial inclusion progress.

The rising cost of banking, including the Electronic Money Transfer Levy (EMTL), ATM withdrawal fees, and interbank transfer charges, has left Nigerians paying more to access their money, a situation experts say could discourage the use of banking services.

According to a trader in Ikeja, she used to accept transfers for all payments before with her OPay account, but with the new charges on transfers, she lost money in December as they started deducting N50 from N10,000 transactions and above.

“Right now, if you are going to transfer, you must be ready to add the charges, or you pay me in cash,” she explained.

Beyond digital transfers, bank customers also face rising costs for basic services. Many banks now deduct between N50 and N100 monthly for account maintenance, while interbank transfers attract charges ranging from N10 to N50 per transaction.

Additionally, customers are charged N6 per SMS alert, and using a bank’s USSD service incurs a N6.95 fee. ATM card replacements now cost between N1,000 and N2,000.

Reacting to the introduction of a N100 charge on ATM withdrawals, Managing Director of Highcap Securities, Mr. David Adonri, expressed concerns over the potential negative impact on Nigeria’s cashless economy initiative.

He warned that traders and small business owners might hesitate to deposit their earnings, knowing that future withdrawals would attract significant charges.

Financial analyst Mr. Adewale Adeoye echoed similar concerns, arguing that while the increased ATM fees might encourage digital transactions, the high cost of electronic banking could push Nigerians away from formal financial services.

Point-of-Sale (PoS) operators, who provide banking services in many underserved communities, are also feeling the pressure.

Chairman of the Lagos Chapter of the Association of Mobile Money & Bank Agents of Nigeria (AMBANN), Mr. David Abiodun, said the new ATM fees would inevitably lead to higher PoS transaction costs.