By Ayomide Otitoju
The Central Bank of Nigeria (CBN) has defended its new policy imposing charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than a customer’s own, stating that the measure is mutually beneficial to both banks and their customers.
CBN’s Acting Director of the Financial Policy and Regulation Department, John Onojah, made this clarification on Channels Television’s Sunrise program on Saturday.
According to Onojah, the policy will help address the persistent issue of cash shortages at ATMs while allowing banks to recover the high costs associated with deploying and maintaining the machines.
“We have gotten the commitment of the banks to ensure that customers no longer face cash shortages at ATMs. At a minimum, customers should be able to withdraw at least N20,000 per transaction,” he stated.
He added that the policy will also encourage banks to install more ATMs, including in remote areas, ensuring broader access to cash services.
“Deploying ATMs is capital-intensive, and banks need a way to recover costs. This policy balances both perspectives—while ensuring customers have access to cash, it also helps banks sustain their operations,” he explained.
Breakdown of New ATM Charges
The CBN, in a circular issued on Tuesday, announced the new charges, effective March 1, 2025:
Customers withdrawing cash from another bank’s ATM will now pay ₦100 per ₦20,000 withdrawn. The previous allowance of three free withdrawals per month from other banks’ ATMs has been scrapped.
For off-site ATMs—those located outside bank premises, such as in shopping malls, eateries, and public places—an additional ₦500 surcharge per ₦20,000 withdrawal will apply, on top of the statutory ₦100 fee.
Onojah emphasized that customers will not be charged when using their own bank’s ATMs for withdrawals.
The new policy has sparked debate among Nigerians, with concerns about increased financial burdens on customers. However, the CBN insists the move will improve ATM cash availability and enhance banking efficiency.
