Banks Load ATMs with Cash as N100 Transaction Fee Takes Effect
Nigerian banks have stocked their ATMs with cash following the implementation of a new N100 withdrawal fee on March 1.
The Central Bank of Nigeria (CBN) introduced this revised ATM transaction charge in a circular dated February 10, 2025. Under the new policy, withdrawals from an individual’s own bank’s ATMs remain free. However, customers using ATMs belonging to other banks will incur a N100 fee for withdrawals of N20,000 or less at machines located within bank premises.
For off-site ATMs—those situated in locations like shopping centers and fuel stations—an additional surcharge of up to N500 per transaction may apply.
International ATM withdrawals will be subject to a cost-recovery model, meaning customers will be charged the exact fee imposed by the foreign acquirer. Additionally, withdrawals under N20,000 from another bank’s ATM will still attract the N100 charge.
Banks Ensure Cash Availability to Limit External ATM Use
During a survey conducted by The PUNCH in Lagos on Sunday, it was observed that banks had adequately stocked their ATMs with cash, likely to discourage customers from using competitors’ machines and incurring additional fees.
At Wema Bank’s Barracks Bus Stop branch on Funsho Williams Avenue, the ATM displayed a notice informing users from other banks that a total of N107.50—including VAT—would be deducted. The branch had four ATMs, all operational.
Similarly, First Bank’s ATMs warned customers from other banks about the N100 fee, with an additional disclaimer stating that their card issuer might charge further fees. Access Bank’s ATMs at Ojuelegba prompted users to confirm their willingness to pay the surcharge before proceeding with withdrawals.
When a customer attempted to withdraw N10,000 using a Union Bank card, the ATM displayed a confirmation page showing the transaction breakdown: “Withdrawal amount: N10,000, access fee: N100, total deduction: N10,100.” Zenith Bank’s ATMs near Empire Bus Stop provided a similar notice, informing customers that N107.50 would be deducted in total.
At Guaranty Trust Bank (GTB), a detailed transaction breakdown was provided, stating: “Dear valued customer, in compliance with the CBN directive, a charge of N100 plus N7.50 VAT will apply for cash withdrawals using other banks’ cards at GTCo ATMs.”
Public Reactions: Frustration Over Additional Banking Costs
The new ATM charges have sparked frustration among bank customers.
Eze Chinonso, a security guard, expressed concern over the increasing financial strain. “Now I have to pay just to access my own money. The cost of living is already high—data, transportation, food—everything keeps going up. This is making things even harder,” he lamented.
On social media, users voiced similar concerns. An X (formerly Twitter) user, Opel Nnenna (@opelnnenna3), shared an email from a fintech company explaining the new charges, emphasizing that for every withdrawal of N20,000 or less, customers would be charged N100 at any bank’s ATM. She criticized the growing financial burden placed on Nigerians by the CBN’s policies, arguing that these fees disproportionately affect ordinary citizens who are already struggling economically.
Fintech companies, which have issued millions of cards in Nigeria according to Statista, do not operate ATMs and, therefore, do not benefit from these charges.
CBN’s Response: Alternative Payment Methods Suggested
To help customers avoid ATM fees, the CBN has advised using only their bank’s ATMs for withdrawals. The regulatory body also encouraged the use of alternative payment methods such as mobile banking apps, point-of-sale (POS) transactions, and online transfers.
“You can withdraw money from your own bank’s ATM to avoid transaction charges. Additionally, minimizing the use of off-site ATMs can help reduce extra fees. Customers should also consider using digital payment channels for transactions,” the CBN stated in its FAQs on the new policy.
Calls for Reversal Grow Stronger
Meanwhile, labor and rights groups, including the Trade Union Congress (TUC) and the Socio-Economic Rights and Accountability Project (SERAP), have demanded an immediate suspension of the fees.
In a statement, TUC President Festus Osifo and Secretary-General Nuhu Toro condemned the policy, describing it as exploitative.
“We strongly oppose this ATM fee hike. Nigerian workers and the public are already overwhelmed by economic hardships. Every day brings a new financial burden—higher taxes, soaring electricity tariffs, and costly data charges. This government has failed to mitigate the negative effects of its economic policies, and people’s patience is running out,” the statement read.
On Sunday, SERAP urged President Bola Tinubu to intervene and suspend the charges until a court ruling on the matter is issued.
“We have called on President Tinubu to direct the CBN to halt the ATM fee increase immediately. This aligns with the Nigerian Constitution, his oath of office, and his commitment to upholding the rule of law,” SERAP stated.
As the debate continues, Nigerians remain concerned about the rising costs associated with banking transactions and the overall impact on their financial well-being.
