By eonojakaromah 
Bank customers are voicing their dissatisfaction following the implementation of new withdrawal fees by the Central Bank of Nigeria (CBN) on Saturday, March 1, 2025.
The updated fee structure mandates that commercial banks charge customers N100 for every N20,000 withdrawn from on-site Automated Teller Machines (ATMs) and N600 for withdrawals made at off-site ATMs.
On February 10, 2025, the CBN circulated a notice to all banks and financial institutions regarding the revision of ATM transaction fees. The new guidelines stipulate that withdrawals from ATMs belonging to the customer’s own bank will remain free of charge.
However, customers withdrawing N20,000 or less from an ATM of a different bank will incur a N100 fee per transaction. The CBN justified these new charges by citing rising operational costs and the necessity to enhance the efficiency of ATM services within the banking sector.
On February 28, just a day prior to the policy’s implementation, Zenith Bank informed its customers via email about the updated fee structure. A recent transaction using a First Bank ATM card to withdraw N10,000 from an Access Bank ATM resulted in the application of the new N100 fee.
Customer Feedback
Many Nigerians are finding the increase in withdrawal fees to be a significant burden, particularly in light of the ongoing economic challenges.
Halima, a customer, shared her frustration, stating, “I was charged N600 for a N15,000 withdrawal at a shopping mall. I needed cash to finalize payment for some items I purchased.”
John Showemimo expressed his annoyance at the lack of viable alternatives. “Using a Point-of-Sale (POS) agent incurs even higher fees. If I want to withdraw N20,000 via POS, I will be charged N500. If I go to my bank’s ATM, I have to pay N600 for transport. What other options do I have?”
Iya Bode, a trader who relies on a feature phone and an ATM card, also expressed her concerns regarding the increased fees.I frequently use my ATM card over five times a day due to the demands of my business. The fees charged by POS operators are excessively high, prompting me to rely on bank ATMs instead. However, the recent increase in withdrawal fees has become burdensome. It raises the question of how much profit I am actually making from my trade.
Expert Insights
A bank employee from the operations department, who also oversees ATM management, noted that since the implementation of the new fees on March 1, there has been no significant decline in ATM usage.
“While customers have expressed dissatisfaction with the new withdrawal fees, they continue to utilize our ATMs. Our machines are operational, and we replenish cash as needed. The Central Bank of Nigeria’s initiative to limit cash circulation is aimed at curbing criminal activities, which is a positive step,” she remarked.
Daniel, an employee at a leading bank, predicts a decline in ATM usage as customers may turn to PoS agents for cash withdrawals.
“Individuals are likely to favor PoS agents over bank ATMs, particularly those withdrawing amounts of N10,000 or less. They prefer to avoid the hassle of traveling, waiting in line, and the risk of their ATM cards being retained by the machine.”
Legal Action
As Nigerians adapt to the new fees, the Central Bank of Nigeria (CBN) is facing a lawsuit from the Socio-Economic Rights and Accountability Project (SERAP) regarding the increased withdrawal charges. SERAP has initiated legal proceedings against the CBN, aiming to overturn what they describe as an “unlawful, unfair, and unjust hike in ATM transaction fees.”
In a public letter signed by SERAP Deputy Director Kolawole Oluwadare, the organization has called on President Bola Tinubu to instruct CBN Governor Olayemi Cardoso to halt the enforcement of the increased ATM fees until the lawsuit is resolved.
“The CBN is obligated to uphold legal standards, maintain the integrity of the judicial process, and ensure that its practices are fair and just.”The judicial process must be upheld, ensuring that its practices and operations do not compromise the rule of law or the integrity of the Court. SERAP emphasized that implementing the increased ATM fees while the lawsuit is ongoing would trivialize the judicial process and undermine the rule of law.
Key Information
The CBN has urged consumers who experience difficulties withdrawing up to N20,000 per transaction to report their issues to the CBN at cpd@cbn.gov.ng.
On-site ATMs are those located within or directly associated with a bank branch, whereas off-site ATMs can be found in places like shopping malls, gas stations, or other public venues.
Banks and financial institutions are prohibited from charging more than the N500 surcharge for an off-site ATM withdrawal of N20,000, as outlined in the previous circular.
For withdrawals made outside Nigeria, the CBN indicated that banks will impose a cost recovery fee, meaning customers will incur the exact charge levied by the international ATM acquirer.
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