Badamasi Bello, Jadetimes Staff
B. Bello is a Jadetimes news reporter covering Nigerian News
CBN Introduces New Charges on ATM: Customers to Pay for Interbank Withdrawals Beginning March 2025
Abuja, Nigeria – In a development that would definitely affect millions of bank customers in Nigeria, the Central Bank of Nigeria disclosed it would henceforth impose charges on withdrawals at Automated Teller Machines outside the banks where the customer's account was domiciled. The new development is contained in a circular issued by the apex bank on February 10, 2025, and brings an end to the three free interbank ATM withdrawals allowed per month under the CBN guidelines.
The circular, signed by the acting Director of Financial Policy and Regulation Department, John Onojah, was addressed to all banks and other financial institutions in the country. It stated that these changes will be with effect from March 1, 2025, aimed at compensating for increased operational cost and enhancing ATM services efficiency across the nation.
Key Changes to ATM Charges
Customers are not charged anything for withdrawals from the ATMs of their own banks. However, customers who use other banks' ATMs will be charged as follows:
- On-Site ATMs (Bank Premises): A flat fee of ₦100 will be charged for every ₦20,000 withdrawn.
- Off-Campus ATMs (Public Places): On every ₦20,000 withdrawal, there will be a ₦500 surcharge added to the statutory ₦100 charge. The off-campus ATMs include those located in shopping malls, food joints, and other public areas.
The CBN said the new charges were to cover the increasing cost of maintaining and operating ATMs as well as encouraging the deployment of more ATMs in the country. "This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service," the circular stated.
Free Interbank Withdrawals Come to an End
This effectively cancels the three free ATM interbank withdrawals allowable under Section 10.6.2 of the CBN's Guide to Charges by Banks and Other Financial Institutions. This policy will affect the thousands of customers who have the habit of using other banks' ATMs because they are closer to their location.
Mixed Feelings from Stakeholders
Bank customers, financial experts, and industry analysts have reacted in mixed response to the announcement. Some of them show an understanding that there is a need to absorb rising operational costs, while others criticized it as another burden on consumers already experiencing economic stress.
This policy is going to affect especially those low-income earners who bank on the ATMs for their daily transactions. The added costs could discourage cash withdrawals and push more people to informal financial channels, according to Dr. Adaobi Eze, a financial analyst based in Lagos.
On the other hand, some analysts have welcomed the move, citing that it would encourage banks to invest more in their ATM networks. "The new charges will help banks recover the costs of maintaining ATMs, which are essential for financial inclusion. This could lead to better service quality and increased ATM availability," said Mr. Tunde Oladipo, a banking consultant.
Implications for Financial Inclusion
The decision by the CBN comes at a time when Nigeria is trying to increase financial inclusion and reduce reliance on cash transactions. While the policy may encourage banks to deploy more ATMs, there are concerns that the additional charges could deter customers from using formal banking channels, particularly in rural areas where ATM access is already limited.
To address these concerns, analysts have called for more investments in digital payment infrastructure and other channels of banking, including mobile money and agent banking. "The CBN and financial institutions must ensure that the cost of accessing financial services does not become a barrier to inclusion," said Mrs. Funke Adebayo, a financial inclusion advocate.
What's Next?
The new policy is to be implemented on March 1, 2025. In addition to updating their systems, banks and financial institutions are expected to communicate the changes to their customers. The CBN also called upon banks to ensure that charges would be applied transparently and clearly explained to the customers with regard to the new fee structure.
As Nigerians gradually get used to the new charges imposed on the use of ATMs, the argument about a balance between cost recovery and consumer protection will be argued further. For now, the CBN remains fixed on its goal of ensuring that the efficiency and sustainability of the country's ATM services come into being.e likely to decide the fate of the largest democracy in Africa for decades.
Comments