Bank customers across Nigeria have voiced their dissatisfaction as the Central Bank of Nigeria’s (CBN) revised ATM withdrawal charges officially came into effect on Saturday, March 1, 2025. The updated fee structure has introduced new costs for withdrawing cash from Automated Teller Machines (ATMs), sparking widespread complaints amid ongoing economic challenges.
Under the new policy, customers withdrawing up to N20,000 from ATMs located outside their bank’s network will now pay a fee of N100 per transaction. For off-site ATMs, those not directly affiliated with a bank branch, withdrawal fees have increased to N600 per transaction. However, withdrawals from one’s own bank ATMs remain free.
The CBN, in a circular issued on February 10, 2025, explained that the changes were necessary to address rising operating costs and improve the efficiency of ATM services across the banking sector. Yet, many Nigerians see the move as an additional burden in an already challenging economic climate.
Many customers are struggling to adjust to the new fees. Halima, a shopper, shared her frustration after being charged N600 for withdrawing N15,000 at a shopping mall. “I needed cash to complete payment for some items I bought, and I was shocked by the charge,” she said.
John Showemimo, another customer, lamented the lack of viable alternatives. “Using a Point-of-Sale (POS) agent is even more expensive. To withdraw N20,000 via POS, I would pay N500. If I go to my bank’s ATM to avoid fees, I’ll spend N600 on transport. What better option do I have?” he asked.
For small business owners like Iya Bode, who rely heavily on cash transactions, the new charges are particularly troubling. “I use my ATM card more than five times daily because of my trade. POS agents charge too much, so I prefer ATMs. Now they’ve increased the fees again, this is too much,” she said.
Despite customer complaints, some banking officials believe the new charges are justified and necessary for improving services. A staff member working in a bank’s operations department noted that while customers are unhappy about the fees, there hasn’t been a noticeable decline in ATM usage since the policy took effect.
“Customers are still using our ATMs despite the complaints,” she said. “The CBN’s move to reduce cash flow in the economy is aimed at curbing criminal activities and promoting digital transactions, it’s a step in the right direction.”
However, others predict a shift in customer behavior. Daniel, an employee at one of Nigeria’s tier-1 banks, anticipates that more people will turn to POS agents for smaller withdrawals to avoid long queues and potential issues with ATMs. “For amounts below N10,000, many will prefer POS agents over traveling to distant ATMs,” he explained.
The new charges have also drawn criticism from advocacy groups. The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the CBN over what it describes as an “unlawful and unfair” increase in ATM fees. In an open letter addressed to President Bola Tinubu, SERAP urged him to direct CBN Governor Olayemi Cardoso to suspend the implementation of these charges until the lawsuit is resolved.
“Implementing these increased fees while the case is pending undermines both judicial processes and the rule of law,” SERAP stated.
On-site ATMs (located within or directly affiliated with bank branches) remain free for customers withdrawing from their own accounts.
Off-site ATMs (found in public spaces like malls or fuel stations) now attract higher withdrawal fees.
Customers denied withdrawals up to N20,000 per transaction can file complaints with the CBN via cpd@cbn.gov.ng.
For international withdrawals, banks will charge customers based on cost recovery, the exact fee imposed by foreign ATM operators.
