12th February 2025, NewsOrient, Business And Economy, News, Law And Society. Photo Credit: Channels Television

The news of the Central Bank of Nigeria’s resolve eliminate the three free monthly withdrawals transaction fees for customers using other banks’ Automated Teller Machine (ATMs) from March 1, 2025, has elicited wide reactions.

Most respondents to the report of the new policy told NewsOrient that it will further increase the suffering of common Nigerians.

News Agency of Nigeria (NAN) had reported that the apex bank disclosed it’s introduction of this policy on Tuesday in a circular posted on its website, addressed to all banks and other financial institutions.

According to the NAN report, the circular, signed by John Onojah, Acting Director, Financial Policy and Regulation Department, said the measure was in response to rising costs.

“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.

“Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025,” he said.

The circular said that withdrawals from a customer’s financial institution attracted no charge, but those from another institution’s ATM in Nigeria would attract charges of N100 per N20,000 withdrawal.

It listed charges of N100 plus a surcharge of not more than N500 per N20,000 withdrawal on other categories of fees for other financial institutions.

It also noted surcharge categories to be disclosed at the point of withdrawal to the consumer.

“Furthermore, the three free monthly withdrawals allowed for Remote-On-Us (other bank’s customers/Not-On-Us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” it said.

Most bank customers who make use of ATM told NewsOrient today that the policy review will further reduce withdrawals with ATM.

“I use ATM to withdraw cash mainly to avoid high POS charges. But with this new policy, I will certainly review my use of ATM,” Mrs Bola Idowu, a trader, told NewsOrient in Lagos.

She added, “the way new charges are being churned out almost every day, we may ultimately stop banking our little earnings.”

Mr Nicholas Udafa, an economist and self employed general merchant, in his reaction to the new policy, told NewsOrient that “this policy may lead to better banking services and efficiency but it’s timing is clearly insensitive.

“This whole idea of endless multiple increases in taxes that directly affect the common people in our society may put more money in the pockets of the government and it’s agents or the banks in this case, but they certainly leave the already squeezed common Nigerians half dead. If you understand social dynamics and likely effects of such insensitive measures, you will agree that it may not be the smartest way of tackling our present harsh economic difficulties,” be said.

~ NewsOrient

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