Banks across Nigeria have started enforcing the new Automated Teller Machine (ATM) transaction fees following a directive from the Central Bank of Nigeria (CBN), sparking widespread dissatisfaction among customers.
A visit to several ATM galleries in Abuja and its environs on Sunday revealed that while cash was available in the machines, many customers expressed frustration over the additional charges.
Luke Abudu, a customer at First Bank along Nyanya-Jikwoyi Road, criticized the policy, stating that it disproportionately affects low-income earners.
“This policy will discourage people from keeping money in banks. I withdrew ₦20,000 today and was charged ₦100. For small business owners like me, this is an unnecessary burden,” he lamented.
Similarly, Victoria Adejo, who was seen at a Zenith Bank branch in Mararaba, argued that withdrawing money from Point of Sale (PoS) agents had now become a cheaper alternative to ATMs.
“It’s unfortunate that our government introduces policies without considering the struggles of ordinary citizens. They claim the charges are meant to improve ATM services, yet we still pay for service charges separately,” she said.
Nurudeen Ehimotor, a customer at Guaranty Trust Bank (GTB) in Asokoro, Abuja expressed concerns that banks might be intentionally discouraging online transactions to force more ATM usage and generate higher fees.
“I tried transferring money using USSD for a whole day without success. My banking app isn’t working, so I had no choice but to use the ATM. It seems like they’re deliberately making online transactions difficult to push people towards ATMs and make more money,” he said, calling on banks to reduce the growing number of charges imposed on customers.
CBN’s Justification for the Fee Hike
The CBN, in a circular issued on February 10, directed all financial institutions to begin implementing the revised ATM transaction fees from March 1. According to the directive, customers withdrawing cash from their bank’s own ATM (On-Us transactions) would not be charged, while withdrawals from another bank’s ATM (Not-On-Us transactions) would attract a ₦100 fee per ₦20,000.
For withdrawals made at ATMs located outside a bank’s premises—such as shopping malls, airports, and other standalone cash points—an additional surcharge of up to ₦500 per ₦20,000 would apply.
Banks swiftly informed their customers of the changes via email, with GTB further notifying its customers that the three free monthly withdrawals previously allowed at other banks’ ATMs would no longer be available.
CSO fumes, asks FG to halt implementation
In response to the policy, the Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to order CBN Governor Olayemi Cardoso to suspend the fee hike until an ongoing legal challenge is resolved.
SERAP, which filed a lawsuit against the CBN last month, argues that the increase in ATM fees is “unlawful, unfair, and unjust.” The organization insists that proceeding with the fee implementation while the case is pending undermines the judicial process and the rule of law.
In an open letter dated March 1, 2025, signed by SERAP Deputy Director Kolawole Oluwadare, the organization urged the president to seek legal counsel from the Attorney-General of the Federation on whether the CBN has the authority to impose the charges while a lawsuit is still before the Federal High Court in Lagos.
“Suspending the ATM fee hike would allow the court to properly hear and determine the case. Implementing the charges while the matter is in court would be a direct affront to the rule of law and make a mockery of the judicial system,” the letter stated.
With public discontent growing and legal action underway, the coming weeks will determine whether the CBN proceeds with the policy or if pressure from consumers and advocacy groups forces a reconsideration.