By Jonah Israel
Commercial banks across Nigeria have begun charging customers N100 for certain ATM transactions, effective today, March 1, 2025. This move follows an update to the guidelines issued by the Central Bank of Nigeria (CBN).
According to the revised fee structure, customers will not be charged for withdrawals from their own bank's ATMs. However, using another bank's ATM will attract a N100 fee for transactions of N20,000 or less. Additionally, off-site ATMs will incur an extra surcharge of up to N500 per transaction.
International ATM withdrawals will be charged based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
The CBN's decision has sparked controversy, with many arguing that it will disproportionately affect low-income Nigerians.
"This policy ultimately favours those who can afford to withdraw larger sums, while the average Nigerian, who withdraws in smaller amounts, bears the brunt," said Tope Dare, a tech entrepreneur. "For many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Now, they face unfair charges that wealthier Nigerians can easily avoid."
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the CBN, urging the court to declare the increased ATM transaction fees unlawful.
"The decision by the CBN to increase ATM transaction fees is arbitrary, unfair, and unreasonable," said SERAP's spokesperson. "It is contrary to the provisions of the Federal Competition and Consumer Protection Act 2018. We urge the court to intervene and protect the rights of Nigerian citizens."
In response to the backlash, the CBN has urged banks to ensure that customers have access to cash at their ATMs to avoid incurring transaction charges.
"banks are expected to ensure that their customers have access to cash at their ATMs, to avoid incurring ATM transaction charges," said John Onoja, Acting Director of Financial Policy and Regulation Department at the CBN.
The introduction of the N100 ATM transaction fee has sparked widespread debate, with many Nigerians taking to social media to express their discontent.
"This is just another way for the banks to exploit us," said one Twitter user. "N100 for every withdrawal? It's daylight robbery!"
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