Nigerians Alarmed By CBN’s Hike In ATM Charges

…Say Action Will Cause More Hardship
…Want NASS To Prevail On Apex Bank To Drop Policy

LAGOS – Experts, activists, and other stake­holders have slammed the Cen­tral Bank of Nigeria (CBN) over its new policy on Au­tomated Teller Machine (ATM) transactions.

Prof. John Ebhomien, an economist and financial expert, in his reaction, said the new CBN policy, which imposes a mini­mum charge of N100 for ATM transactions exceeding N20,000 from March 1, 2025, said it is in­deed outrageous.

Recall that the Olayemi Car­doso-led apex bank recently an­nounced that other bank’s ATM transactions will attract a mini­mum of N100 per N20,000 from March 1, 2025.

This is according to a FAQ document published by the apex bank on its website last Thursday, which provides further informa­tion on the new CBN’s directive.

The directive is said to be part of the newly revised ATM trans­action fees set to take effect from March 1, 2025, as contained in the CBN circular dated February 10, 2025.

Under the revised fee struc­ture, withdrawals from one’s bank ATMs will remain free of charge.

However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.

Off-site ATMs, which are po­sitioned outside bank premises such as shopping malls, fuel sta­tions, and other public spaces, will attract an additional sur­charge of up to N500 per trans­action.

Prof. Ebhomien, a former World Bank/International Mon­etary Fund (IMF) consultant, stated: “It is alarming that the CBN seems to have disregarded the plight of depositors, who are already burdened with numer­ous charges.

“The CBN should urgently put in place appropriate mecha­nisms for the regulation of the activities and other sharp prac­tices in the banks.

“Nigerians are sick and tired of outrageous charges such as counter cheque charges, electron­ic transfer charges, ATM mainte­nance charges, Federal Govern­ment levy charges, POS charges, and renewal charges, etc.

“Where do we go from here? This recent ATM transaction charge has generated serious concerns by bank depositors.

“The National Assembly should look into this urgent matter of national importance. They should prevail on the CBN and Monetary Policy Committee (MPC) to reverse this policy.”

Bishop Herbert Ekechukwu, a cleric and economist, recount­ed: “This new policy is expected to take effect from March 1, 2025. Another bank ATM will attract N100 levy, plus additional sur­charge of up to N500 per N20,000.”

Dr Ekechukwu lamented: “Taxes and more taxes on over­burdened masses. The average Nigerian is struggling to make a living.

“They are already encum­bered with super runaway in­flation. To suffocate them again with more taxes shows a high level of insensitivity by the elite ruling class.

“Not quite long, we discussed the proposed increase of telecom tariff and now this.

 “I remember many years ago when Military President Ibrahim Babangida was putting Nigerians under great affliction with the Structural Adjustment Programme (SAP).

“General Olusegun Obasanjo warned that SAP should have a human face. I do not see this gov­ernment having a human face.

“Please, let us think outside the box to grow this economy. Taxation is not the only way to grow the economy.

“Let us look at other options available without putting more stress on the already suffering masses.

“Let our emphasis shift to youth empowerment, agricul­ture and rural industry, quality education, etc.

“Taxation is necessary, but people’s welfare is of utmost im­portance.”

Tola Oresanwo, an activist and public affairs analyst, said the revision of ATM transaction fees by the CBN at a time Nige­rians are battling to make ends meet and struggling to adjust to higher prices of other basic ne­cessities like fuel, power supply, food, and communication is an ugly development.

Oresanwo, the Director of Ad­ministration and Programmes, Centre for Anti-Corruption and Open Leadership (CACOL), stat­ed: “It portrays this administra­tion as one that is insensitive, unresponsive and callous.

“The weight of the burden being placed on the common man in the country is becoming unbearable day by day.

“Although the CBN attributes this review to rising operational costs and the need to enhance the efficiency of ATM services in Nigeria’s banking industry, I want to disagree with that notion because going by the huge profits after tax being declared by these commercial banks, year in, year out, there is no basis whatsoever for an upward review of the ATM transaction charges.

“The increased fees may discourage the use of banking services, especially among low income earners who may see the upward review as a means of cheating or shortchanging them, and this move could negatively impact the CBN’s financial inclu­sion campaign.”

Utase Joseph Utase, a consul­tant, stated: “The new CBN poli­cy imposing a minimum charge of N100 per N20,000 withdrawn from other banks’ ATMs will sig­nificantly impact on everyday Nigerians.

“Many rely on ATMs for cash transactions, especially in areas with limited banking services.

“This additional cost could strain low income earners who frequently use ATMs for small withdrawals.

“It may also discourage cash transactions, pushing more peo­ple toward digital banking.

“However, for those with lim­ited access to mobile banking, it could lead to frustration and increased financial burden.

“Ultimately, while the policy may benefit banks operationally, it adds another expense for regu­lar Nigerians.”