ATMs stocked with cash as new N100 withdrawal fee takes effect

Nigerian banks have started the implementation of revised Automated Teller Machine (ATM) transaction fees, following a directive from the Central Bank of Nigeria (CBN).

This policy change, contained in a circular dated February 10, 2025, introduces a N100 charge for every N20,000 withdrawn from ATMs outside a customer’s bank network.

Withdrawals within a customer’s bank branch network remain free.

But when a customer uses ATMs of other banks, he 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.

Banks have promptly adapted to these changes, ensuring that ATMs are well-stocked with cash to accommodate customer needs.

A visit to various ATM galleries in Abuja and surrounding areas revealed that machines were operational and loaded with cash, providing uninterrupted service to customers.

The introduction of these fees has elicited mixed reactions from bank customers.

Many express concerns over the additional financial burden, particularly during challenging economic times.

Some customers fear that these charges may discourage the use of banking services, especially among low-income earners and small business owners.

In response to the fee hike, the Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the CBN to suspend the implementation of the increased ATM transaction fees.

SERAP argues that the fee hike is “patently unlawful, unfair, and unjust,” and has filed a lawsuit challenging its legality.

The organization has also urged the President to seek legal advice from the Attorney-General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, on whether the CBN has the legal responsibilities to uphold the rule of law in its operations by suspending the ATM fee hike, pending the determination of the lawsuit on the matter.

The CBN maintains that the revision of ATM transaction fees is a necessary response to rising operational costs and aims to improve the efficiency of ATM services across the banking industry.

The apex bank asserts that the policy will ensure cash availability to customers and assist banks in recovering costs associated with ATM operations.

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