In what seems to be a continued attempt to further discourage bank customers from visiting ATMs and empowering Point of Sales (PoS) operators, Nigeria’s Apex bank, the Central Bank of Nigeria (CBN) has astronomically increased ATM transaction fees.
By the new directive to banks, the CBN has also cancelled out the three free monthly withdrawals allowed for Remote-On-Us (Other bank’s customers/Not-On-Us customers). Prior to now, customers who make withdrawals from other bank’s ATMs are allowed to make such withdrawals three times before being charges N35.
In the memo signed by the CBN Acting Director, Financial Policy and Regulation Department, John Onojah, the Apex bank laid out other charges. Going by the circular, customers using their bank ATM will incur no charges, aside the optional SMS charge. However, when withdrawing from another bank’s ATM in Nigeria, customers will pay N100 for every N20,000 withdrawal from on-site ATMs, while off-site ATMs will attract the mandatory N100, plus a surcharge of not more than N500 per N20,000 withdrawal.
The CBN explained that the surcharge, which is an income of the ATM deployer/acquirer, will be disclosed at the point of withdrawal to the customer. On the other hand, international withdrawals, which will be based on per transaction, either with Debit or Credit card, will attract charges by international acquirer.
It further explained that the upward review was exerted “in response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services.”
It will be noted that aside these transaction fees, banks also charge customers on ATM Card Acquisition, Card Maintenance Fee, Electronic Money Transfer Levy (on every transfer above N10,000); VAT on Card Issuance, and sundry charges.
The revised fees and new charges will come into effect from March 1, 2025.
However, the pertinent questions some consumers who expressed shock that the CBN would think of increasing transaction charges at a time when bank customers are groaning under multiple charges and levies, are asking borders on the fact that most ATMs in bank premises and off-site ATMs do not dispense cash, making the CBN’s reason of more ATM deployment unreasonable.
It will be recalled that a survey by eBusiness Life revealed that most banks with multiple ATMs only load cash in a few of them. A particular bank in Lagos with a gallery of 13 ATMs had only one working as at the time of the report.
Some banks staffs have accused CBN of not providing adequate cash to stock the ATMs, and wonder why the Apex Bank will take actions that will rub off negatively on the image of banks .
According to a trader at the Ladipo spare part market, Basil Okeama, the “These rip-offs by banks will only make people prefer exchanging cash and keeping loads of cash in their homes and pockets. And this defeats the idea of encouraging Nigerians to
