CBN’s new withdrawal charges: Nigerians to pay more for ATM and PoS transactions

DDM News

The Central Bank of Nigeria (CBN) has announced new withdrawal charges for ATM and PoS transactions.

Diaspora digital media (DDM), gathered that these charges will take effect from March 1, 2025, sparking concerns among Nigerians.

CBN says the changes aim to improve service delivery and address rising operational costs in the banking sector.

Many Nigerians are worried about the financial impact these charges will have on daily transactions.

Customers withdrawing money from another bank’s ATM will now pay a ₦100 fee per transaction.

This fee applies to all interbank withdrawals, removing the previous three free monthly withdrawals.

Previously, customers could withdraw from another bank’s ATM up to three times a month without extra charges.

Now, every interbank ATM withdrawal will attract a compulsory fee, regardless of frequency.

CBN has also introduced additional surcharges for withdrawals made from off-site ATMs.

Off-site ATMs are those located outside bank premises, such as malls and fuel stations.

Customers using off-site ATMs may pay up to ₦500 in surcharges per ₦20,000 withdrawal.

This means withdrawing ₦20,000 from an off-site ATM could cost up to ₦600 in total fees.

CBN claims these surcharges will help banks recover the operational costs of maintaining off-site ATMs.

The new charges also affect PoS withdrawals, leading to higher costs for consumers.

CBN will charge ₦400 for using PoS to withdraw money with an ATM card.

Another ₦100 will be deducted for withdrawing more than ₦10,000 at PoS terminals.

This means withdrawing ₦20,000 from a PoS terminal could attract total charges of nearly ₦1,000.

PoS agents also charge their own fees, increasing the overall cost for customers.

Many Nigerians rely on PoS services, especially in areas with limited banking infrastructure.

The new charges could make cash withdrawals more expensive and inconvenient for the public.

CBN insists these changes are necessary to improve financial services across Nigeria.

John Onojah, CBN’s acting director of Financial Policy and Regulation, defended the policy.

He said the changes will encourage banks to deploy more ATMs nationwide.

CBN believes standardizing charges will lead to improved cash access, especially in rural areas.

Despite CBN’s explanations, many Nigerians have expressed frustration over the new charges.

Critics argue the fees will increase financial hardship for low-income earners.

Some fear the charges will push people toward informal financial services.

This could negatively impact financial inclusion efforts and slow down Nigeria’s cashless policy.

Businesses that rely on PoS transactions may also face financial strain due to higher charges.

Many consumers say these fees will discourage them from using ATMs and PoS services.

Instead, they may prefer cash transactions to avoid extra charges.

Financial experts advise Nigerians to adopt digital banking solutions to minimize cash withdrawal costs.

Using mobile banking apps and online transfers can help reduce dependence on ATMs and PoS.

Planning cash withdrawals carefully can also help customers avoid unnecessary charges.

Consumers should check their bank’s ATM locations to use their bank’s machines and avoid interbank fees.

CBN says withdrawals from a customer’s own bank’s ATM will remain free.

However, this does not help those whose bank has limited ATM locations.

Public response to the new charges has been overwhelmingly negative.

Many Nigerians feel the policy does not consider the financial realities of everyday people.

CBN insists the charges will ultimately benefit the banking system in the long run.

As the March 1 deadline approaches, consumers and financial institutions are adjusting to the changes.

Banks are expected to update their systems and inform customers about the new charges.

Many Nigerians are calling for a review of the policy to reduce its impact.

Some suggest CBN should consider alternative ways to fund ATM infrastructure.

The effectiveness of the policy remains uncertain until full implementation begins.

CBN may need to adjust its approach if public backlash continues.

For now, Nigerians must prepare for higher costs on ATM and PoS withdrawals.

Financial literacy and strategic planning will be crucial in managing the new banking charges.

CBN urges consumers to stay informed and explore digital banking alternatives.

As discussions continue, Nigerians await further clarification on how these charges will affect them.

The coming weeks will determine if CBN’s policy achieves its intended goals.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook