Banks are loading their ATMs with cash as they commenced charging N100 for transactions on March 1.
The Central Bank released the revised ATM transaction fees in a 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.
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
CBN also clarified that Nigerians withdrawing less than N20,000 from another bank’s ATM will still be charged a fee of N100 per transaction.
Banks monitored on Sunday afternoon showed that they loaded their ATMs with cash, thus limiting the chances of their customers using another bank’s ATM and incurring the extra charge.
At the Wema Bank Branch at Barracks Bus Stop along Funsho Williams Avenue in Lagos, the ATMs notified other banks’ cardholders that they would be charged “N107.50 inclusive in addition to the stated amount.”
There were four ATMs on the premises, and they were all loaded.
When asked about the N100 charge, the bank’s security personnel said there was nothing they could do, as it was from the authorities.
The ATMs at the nearby First Bank branch told other banks’ customers attempting to withdraw money from it, “The amount charged on your account may include a fee of N100 in addition to the requested amount.”
This is in addition to any fee charged by your issuer.”
The ATMs at the Access Bank branch at Ojuelegba asked the customers of other banks to confirm if they were willing to pay the access fee of N100.
An attempt to withdraw N10,000 with a Union Bank card brought up a cash withdrawal confirmation page asking, “Please confirm if you wish to continue, Amount withdrawn: N10,000, access fee: N100, transaction amount: N10,100.”
The ATMs at the Zenith Bank branch near Empire Bus Stop brought up a similar notice, saying, “The amount charged to your account will include a fee of N107.50.” and asked if the customer wanted to proceed.
Guaranty Trust Bank branch just next door provided a breakdown of the ATM transaction charges, stating, “Dear valued customer, in line with CBN’s directive, there will be a charge of N100 and N7.50 VAT for cash withdrawals of other banks’ cards on GTCo ATMs.”
All the bank branches visited had cash, and the branches had at least four ATM points.
Meanwhile, some customers are lamenting the extra cost they have to pay for ATM use.
A bank customer, Eze Chinonso, lamented that it was one more inconvenience to deal with on his meagre salary from security work.
“This is another cost I must pay to use my money. The cost of data has gone up and other costs as well. Honestly, this is squeezing an already stressed pocket,” he lamented.
A social media user on the X platform, Opel Nnenna (@opelnnenna3), also bemoaned the charges and shared an email from a fintech firm on the charges, which partly read, “In line with the CBN’s recent review of ATM withdrawal fees, you will be charged the following fees by other banks when you make ATM withdrawals with your Kuda Card from this Saturday, March 1, 2025: Fee for withdrawals at ATMs on any bank’s premises. For every withdrawal of N20,000 or less that you make at an ATM located on any bank’s premises, the bank that owns the ATM will charge you a fee of N100. For withdrawals that exceed N20,000 within a day, you’ll be charged an additional fee of N100 for every extra N20,000 or less that you withdraw.”
Opel said, “I’m deeply concerned about the increasing banking charges imposed on Nigerian citizens by the Central Bank of Nigeria and the government. It seems unfair that citizens are being charged multiple fees. The economic hardship is becoming unbearable for most Nigerians. If the current administration and CBN leadership cannot effectively manage the country’s financial system in a way that serves the citizens, perhaps it’s time for new leadership with fresh perspectives. The CBN Governor should understand that citizens are suffering from these policies. These excessive charges are particularly burdensome, given the limited funds many Nigerians have in their accounts.”
It is instructive to note that fintechs that have issued millions of cards in Nigeria, according to Statista, do not operate ATMs and do not stand to benefit from the N100 ATM transaction charges.
To avoid the ATM charges, the Central Bank suggested using only your bank’s ATM or other payment channels.
“You should withdraw money from your bank’s ATM (On-Us transaction) to avoid the transaction fees. Additionally, limiting your use of off-site ATMs is advisable to minimise the surcharge. Further, consumers can explore other payment channels such as mobile apps, POS devices for payments, etc.,” CBN said in its Frequently Asked Questions segment on the development.
Meanwhile, both the Trade Union Congress and the Socio-Economic Rights and Accountability Project have called for a suspension of the charges.
In a statement signed by the TUC president, Festus Osifo, and Secretary-General, Nuhu Toro, the union urged all well-meaning Nigerians to reject what it described as an exploitative policy and demand its immediate reversal.
“Our attention has been drawn to a circular from the CBN announcing an increase in ATM transaction fees, effective March 1, 2025. We say unequivocally: enough is enough. The Nigerian workers and the general public have endured relentless economic hardship under this administration.
“Every day brings a new burden—higher taxes, rising electricity tariffs, exorbitant call and data charges, and now, increased ATM fees. This government has failed to cushion the effects of its harsh economic policies, and the patience of Nigerians is wearing thin.”
On Sunday, SERAP called on President Bola Tinubu to direct the CBN to halt the charges.
“We’ve urged President Tinubu to direct the CBN to immediately suspend the ATM fee hike pending a court verdict on the matter. This is entirely consistent with the Nigerian Constitution 1999 [as amended], his oath of office, and promises to uphold the rule of law,” said the organisation that has sued CBN on the matter.
