In the face of extreme hardship and numerous government impositions on already overstretched citizens, the Central Bank of Nigeria, CBN, has imposed a withdrawal charge of between N100 and N600 for every N20,000 worth of interbank Automated Teller Machines (ATM) withdrawals.
The new policy terminates the three free monthly withdrawals that customers enjoy on interbank ATM withdrawals.
Over the last few years, many bank ATMs have failed to dispense cash with Nigerians patronising mostly Point of Sales terminal operators (PoS). This latest directive from the apex bank will likely increase patronage.
According to a CBN circular, FPR/DIR/GEN/CIR/001/002 with the title, ‘Review of Automated Teller Machine Transaction Fee,’ dated February 10, 2025, the new fees would take effect March 1, 2025.
The Apex Bank said, “In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide)”.
The CBN said customers withdrawing at the ATM of their financial institution in Nigeria would not be charged.
“Withdrawal from another institution’s ATM in Nigeria (Not-On-Us): On-site ATMs (within bank premises): A fee of N100 per N20,000 withdrawal will apply,” the apex bank further directed.
For Off-site ATMs (outside bank premises), the apex bank said a charge of N100 plus a surcharge of not more than N500 for every N20,000 withdrawal would be applicable.
It said that international withdrawals would be based on the exact amount imposed by the international acquirer.
The CBN said, “This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.
“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
On account of the mounting number of ATMs) that have remained “temporarily unable to dispense cash”, the banking public accused Deposit Money Banks (DMBs), of colluding with PoS terminal operators to deliberately trade on the naira and extort Nigerians of their hard-earned money.
All over the country, POS agents are seen helping everyday people perform their transactions.
As many ATM machines are hardly cash-loaded however, the banking public has started calling for a ban of the service due to abuse and extortion so that every transaction could be carried out through other electronic channels or the banks.
As if operating a racket in Nigeria, a debit card can only withdraw N150,000 per day which is below what the average POS operator transacts daily. Now Nigerians have to pay N600 per transaction involving another bank in the event their banks have no cash.
But POS charges might also rise.
According to Iroh Uzoigwe, “POS operators have more than 10 Banks accounts with different ATM cards. They only use one or two for business and the rest for ATM withdrawals.”
“I feel commercial banks in Nigeria intentionally refuse to stock their ATMs with cash so that people will go to PoS operators. They collude with these people. How can (withheld) bank not have cash in these ATMs? It’s so funny. Close the ATMs if you don’t want to stock it.”
Eniola Daniel who took to his X ( formerly Twitter) handle said Nigerian banks and the CBN have surrendered to POS operators- it’s troubling.
“No money in ATM machines but POS operators around the banks have cash and no one is talking. CBN is just not bothering, we are losing all sense of normalcy in NIGERIA. What is happening @cenbank?, “he lamented.
Another X user said he got new notes from the same lady who is into POS and Black market fuel business.
Also, Christopher on X said, “I paid N40,000 charge to a POS stand to withdraw N2million. If Nigerian banks claim they don’t have cash to give citizens, how do these POS guys get theirs?? Even the most basic of things in this country is a big problem. Tufiakwa!”
Findings show that five days out of seven a week, most of the ATM locations in Lagos mainland are usually empty because the machines are out of service, out of network, or out of cash. It is the same experience many bank customers face with about 22,600 ATM locations, as Inlaks data show, spread across the country.
Nigeria requires about 60,000 ATMs to meet up with its growing population of 216 million people and a banking population of 106 million adults, according to Tope Dare, executive director of Inlaks, the largest ATM operator in the country, which controls over 50 percent of the market.
