Nigerian students to CBN: Suspend newly introduced charges on ATM transactions

Nigerian students under the leadership of the National Association of Polytechnic Students (NAPS) has appealed to the Central Bank of Nigeria (CBN) to suspend the newly introduced charges on ATM transactions.

NAPS expressed their reservations on Tuesday following the release of the CBN circular, which eliminated the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.

Under the new directive, withdrawals made from a customer’s bank ATM will remain free. However, customers using another bank’s ATM will now be charged N100 per N20,000 withdrawal when using ATMs located within bank premises.

Reacting, in a statement issued on Tuesday, 11th of February, 2025 by its National President, Oyewumi Joy Festus and its National PRO, Jimoh Ibrahim, NAPS described the charges as exploitative and an attack on the financial stability of Nigerian students and the masses

NAPS noted that such policy should not be introduced in a time of economic hardship.

The statement reads partly: “…this policy, which introduces excessive withdrawal fees for “Not-On-Us” transactions, is not only exploitative but also an attack on the financial stability of Nigerian students and the masses. It is unacceptable that in a time of economic hardship, the CBN is prioritizing revenue generation over the welfare of citizens.

“The directive imposes ₦100 per ₦20,000 withdrawal at on-site ATMs and an additional surcharge of up to ₦500 per ₦20,000 at off-site ATMs.
This means that a student withdrawing ₦40,000 from an off-site ATM could pay up to ₦1,200 in fees, an outrageous amount for young Nigerians struggling with tuition, accommodation, and daily expenses.

“Many polytechnic students do not have access to their bank’s ATMs on campuses or in their localities, forcing them to use other banks’ ATMs. This policy punishes them for circumstances beyond their control.

“The new fees will further widen the financial gap and increase hardship for students who rely on cash transactions for basic needs.

“At a time when digital banking remains unreliable, CBN’s decision to increase ATM withdrawal costs is counterproductive to financial inclusion.

“This policy also indirectly discourages education, as students will have to spend more on bank charges instead of academic materials.

“As the voice of Nigerian polytechnic students, NAPS demands the immediate reversal of these outrageous charges.

“We call on CBN to suspend and review this policy to protect Nigerian students and the general public.

“Banks to halt any planned implementation of these exploitative charges.

“The Federal Government to intervene before this policy further impoverishes Nigerians.

“We urge all relevant stakeholders to engage in meaningful dialogue to ensure that banking policies remain student-friendly, fair, and inclusive.