Nigerian Banks Introduce New ATM Withdrawal Charges Amid Controversy

As of the 1st of March, 2025, Nigerian banks have implemented the new fee structure for Automated Teller Machine (ATM) withdrawals as directed by the Central Bank of Nigeria (CBN).

The new policy charges ₦100 for every ₦20,000 withdrawn from on-site ATMs, Off-site ATMs, or ATMs outside bank premises will attract a total fee of ₦600 per ₦20,000 withdrawn. Which means instead of the ₦100 standard fee, an addition of ₦500 will be added once the ATM is not within the bank premises.

The CBN decided to review these charges to address rising operational costs and improve banking services across the country. In a circular signed by John Onojah, Acting Director, Financial Policy and Regulation Department, the apex bank said the adjustments are to ensure the sustainability of ATM services in the country.

Public reaction has been mixed. Some Nigerians are not bothered, saying they are moving away from ATM to digital banking platforms. Others see it as an additional burden, especially for those who mostly use cash. Discussions have also centred on the availability of cash in ATMs and POS operators increasing their fees.

Financial experts have weighed in. Dr. Uju Ogubunka, Chairman, Bank Customers Association of Nigeria, said the policy is economically justified but expressed concern about the extent of the fee increase by Deposit Money Banks (DMBs). He said, “It should have been expected. Other places have increased their fees. The only thing one can talk about is the extent of the increase.”

Some banks have already adjusted their ATM withdrawal policies. Standard Chartered Bank has set a daily ATM withdrawal limit of ₦70,000 to conform to the CBN’s directive. Ecobank has also informed its customers about the new charges and advised them to use Ecobank ATMs or explore digital banking for more cost-effective transactions.

CBN also warned banks against reducing ATM withdrawal to below ₦20,000. The bank said ATM charges for withdrawals from other banks’ ATMs (on-site and off-site) are based on the assumption that customers can withdraw up to ₦20,000 per transaction. Banks that force customers to withdraw less than this will be penalized.