Nigerian banks have commenced the implementation of the new Automated Teller Machine (ATM) transaction fees following the directive issued by the Central Bank of Nigeria (CBN).
The enforcement of these charges, which began on Saturday, March 1, 2025, has sparked widespread discontent among customers, many of whom believe the policy will disproportionately affect the masses.
A correspondent from the News Agency of Nigeria (NAN), who monitored ATM galleries across Abuja and its environs on Sunday, reported that while all the visited ATMs were operational and loaded with cash, several customers expressed frustration over the increased charges.
At First Bank along the Nyanya-Jikwoyi road, a customer, Mr. Luke Abudu, lamented that the new charges would make banking more difficult for ordinary Nigerians.
“I came to withdraw N20,000 but I found out that I was charged N100 for the withdrawal. This is too much for a small business owner like me,” Abudu complained.
He further argued that such policies would discourage customers from keeping their money in banks.
Similarly, at Zenith Bank’s Mararaba branch, Mrs. Victoria Adejo criticized the policy, stating that it was now cheaper to withdraw money from a Point of Sale (PoS) agent than using an ATM.
“It is unfortunate that our government formulates policies without feeling the pulse of the people. The CBN claims the increase is due to rising costs and the need to improve ATM efficiency, yet banks continue to charge service fees on transactions. They declare profits in billions and trillions from our deposits, and the CBN does not take that into account. This is not good enough,” she said.
At Guaranty Trust Bank (GTB), Asokoro, another customer, Mr. Nurudeen Ehimotor, complained about the added financial burden, saying he resorted to using the ATM due to issues with online banking services.
“I came to use the ATM because I tried to transfer money using USSD since yesterday, but it didn’t go through. My banking app also has issues, so I rely on USSD codes for transactions. It seems like banks are now pushing customers towards ATM transactions to make more money from fees,” he said, urging banks to reconsider excessive deductions from customers’ accounts.
The CBN, in a circular released on February 10, 2025, titled ‘Review of ATM Transaction Fees’, directed all banks and financial institutions to apply the revised fees starting from March 1. According to the directive:
On-Us Transactions (withdrawals made at an ATM belonging to the customer’s bank) remain free of charge.
Not-On-Us Transactions (withdrawals made at ATMs of other banks) attract the following fees:
On-site ATMs: N100 per N20,000 withdrawal.
Off-site ATMs: N100 plus a surcharge of not more than N500 per N20,000 withdrawal.
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The CBN explained that the revenue from these charges, designated as the income of the ATM acquirer/deployer, must be transparently disclosed to consumers at the point of withdrawal.
Several banks have informed their customers of the fee implementation through electronic messages. Guaranty Trust Bank (GTB) announced that customers would no longer enjoy the usual three free monthly withdrawals at other banks’ ATMs.
“Please note that the three free monthly withdrawals at other banks’ ATMs (for GTBank customers) and GTBank ATMs (for other bank customers) will no longer apply,” GTB stated in an email to its customers.
Similarly, Access Bank used its official X (formerly Twitter) handle to reassure customers about seamless transactions across all ATMs and PoS machines, saying, “All Access Cards now work seamlessly across all ATMs and POS machines, so you can make payments without hassle.”
As customers grapple with the impact of these increased charges, there are growing concerns that the policy may drive more Nigerians toward alternative financial solutions, including PoS agents and digital wallets, to avoid excessive fees.
While the CBN maintains that the new charges are necessary to improve ATM efficiency, many citizens argue that the decision places additional financial strain on an already struggling population.
With the implementation now in full swing, customers and financial experts alike will be closely monitoring whether the additional fees translate into improved banking services or simply serve as another burden on everyday Nigerians.