Nigerians lament as banks enforce N100 ATM withdrawal charges

DDM News

Banks in Nigeria have begun charging N100 for ATM withdrawals involving other banks’ cards.

The Central Bank of Nigeria (CBN) issued a directive implementing this charge from March 1, 2025.

In response, banks have loaded their ATMs with cash to encourage customers to use their own bank’s machines.

The revised ATM fee structure was outlined in a circular dated February 10, 2025.

Withdrawals from an account holder’s own bank’s ATM remain free of charge.

However, withdrawing from another bank’s ATM now attracts a N100 charge for transactions of N20,000 or less.

This charge applies to ATMs located within or directly affiliated with a bank branch.

For off-site ATMs, customers may face additional surcharges of up to N500 per transaction.

Off-site ATMs are located in shopping malls, fuel stations, and other public spaces.

International ATM withdrawals will be based on cost recovery, meaning customers bear the exact fee applied by foreign banks.

CBN confirmed that withdrawals below N20,000 from another bank’s ATM will still attract a N100 fee.

Banks load ATMs to prevent customer migration

On Sunday, Diaspora digital media (DDM) monitored several banks in Lagos and confirmed their ATMs were stocked with cash.

At the Wema Bank branch near Barracks Bus Stop, ATMs displayed a charge notice of N107.50 for other banks’ cardholders.

Four ATMs were operational at the Wema Bank branch, all stocked with cash.

First Bank’s ATM warned non-customers about a possible N100 fee on top of the requested withdrawal amount.

Access Bank’s ATM in Ojuelegba asked customers to confirm their willingness to pay the additional N100 fee.

A Union Bank cardholder attempting to withdraw N10,000 saw a total charge of N10,100, including the access fee.

Zenith Bank’s ATM at Empire Bus Stop displayed a notice of a N107.50 charge for non-Zenith cardholders.

Guaranty Trust Bank (GTB) provided a breakdown of the fee, including N100 plus N7.50 VAT for withdrawals.

All bank branches visited had at least four functioning ATMs stocked with cash.

Customers decry extra charges

Many Nigerians have expressed frustration over the additional ATM withdrawal fees.

A security worker, Eze Chinonso, lamented the financial burden on his already strained income.

“This is another cost I must pay just to access my own money,” he said.

He complained about rising data costs and increasing prices of goods and services.

A social media user, Opel Nnenna, criticized the move on the X platform.

She shared an email from a fintech company detailing the new ATM charges.

The message explained that withdrawals of N20,000 or less at bank premises attract a N100 fee.

Withdrawals exceeding N20,000 within a day incur an extra N100 fee per additional N20,000 withdrawn.

Opel described the charges as unfair and burdensome for struggling Nigerians.

She argued that banking fees were becoming excessive amid rising economic hardship.

She called for new leadership at the CBN to prioritize citizens’ financial well-being.

Fintech firms issuing millions of payment cards do not operate ATMs and will not benefit from the transaction fees.

CBN advises customers on avoiding charges

The CBN has suggested ways for customers to avoid ATM withdrawal charges.

Customers should withdraw cash only from their own bank’s ATMs.

The CBN advised limiting the use of off-site ATMs to minimize surcharges.

Consumers were encouraged to explore alternative payment methods such as mobile banking apps and POS terminals.

“You should withdraw money from your bank’s ATM to avoid the transaction fees,” the CBN stated.

Unions, rights groups demand suspension of ATM charges

The Trade Union Congress (TUC) and Socio-Economic Rights and Accountability Project (SERAP) have condemned the new ATM charges.

They called for an immediate suspension of the fees.

In a joint statement, TUC President Festus Osifo and Secretary-General Nuhu Toro urged Nigerians to reject the policy.

“Our attention has been drawn to the CBN circular increasing ATM transaction fees,” the statement read.

They described the policy as exploitative and unfair to the Nigerian public.

“Nigerian workers and the general public have endured relentless economic hardship,” they added.

They accused the government of failing to cushion the effects of its harsh economic policies.

SERAP urged President Bola Tinubu to direct the CBN to halt the ATM charges.

The organization argued that the charges violate the Nigerian Constitution.

They stressed that President Tinubu must uphold the rule of law and protect citizens’ financial rights.

As Nigerians grapple with economic challenges, the new ATM charges have added to public frustration.

With mounting pressure from labor unions and rights groups, citizens await possible policy changes.

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