In a move that has sparked widespread concern, Nigerian commercial banks have announced new Automated Teller Machine (ATM) transaction fees, with some withdrawals now attracting an additional surcharge of up to ₦500 per ₦20,000 transaction at off-site ATMs.
This development follows the Central Bank of Nigeria’s (CBN) revised policy, which takes effect on March 1, 2025. The directive mandates new charges on ATM withdrawals, effectively ending the previous policy that allowed customers three free interbank withdrawals per month.
Guaranty Trust Bank (GTBank), one of Nigeria’s leading financial institutions, has clarified its stance on the new structure. According to the bank:
Withdrawals at GTBank ATMs will remain free for customers.
Withdrawals at other banks’ ATMs will now attract charges.
Withdrawals at standalone ATMs (machines not located at bank branches) will attract an additional ₦100 fee, plus a surcharge of up to ₦500 per ₦20,000 withdrawal.
The bank reassured customers of its commitment to seamless service, urging them to review the full CBN directive for further clarification.
The CBN circular, signed by Acting Director of Financial Policy and Regulation, John S. Onojah, and released on February 10, 2025, claims the adjustments aim to “enhance efficiency and encourage ATM deployment across Nigeria.”
The directive states that the surcharge is an “income of the ATM deployer/acquirer” and must be disclosed at the point of withdrawal. Additionally, Nigerians withdrawing cash abroad with their debit or credit cards will be charged according to the international acquirer’s fee structure.
However, critics argue that while the policy may promote ATM expansion, it disproportionately affects everyday Nigerians, especially those in rural areas with limited banking infrastructure.
With the Nigerian economy struggling under inflation and rising living costs, the new directive has raised serious concerns. Many Nigerians rely on cash transactions due to poor digital banking access and unreliable electronic payment systems.
Financial experts warn that instead of encouraging financial inclusion, the policy may:
Increase financial burdens on citizens, especially those who depend on standalone ATMs.
Discourage cash transactions, forcing more Nigerians to explore alternative banking methods.
Create an uneven financial landscape, where only those near bank branches can withdraw cash affordably.
As the March 1 implementation has come, Nigerians are questioning whether this directive truly serves their interests or merely benefits banks and ATM service providers.
For now, customers must prepare for higher withdrawal costs, with many already exploring alternative means of accessing cash without incurring exorbitant fees.
Would this policy encourage financial inclusion or push more Nigerians towards costly banking alternatives? Only time will tell.
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