CBN’s New ATM Charges Raise Concerns Over Financial Inclusion and Cashless Policy”

The Evolution of ATM Charges in Nigeria

In Nigeria’s financial landscape, few policy shifts have generated as much public discourse as the Central Bank of Nigeria’s (CBN) periodic review of ATM transaction fees. Over the years, these changes have reflected the dynamic interplay between regulatory policies, banking efficiency, and customer experience.

The last major revision occurred in 2019, when the CBN reduced ATM withdrawal fees from ₦65 to ₦35 after the third transaction within a month. At the time, the move was seen as a consumer-friendly decision, aimed at reducing the financial burden on Nigerians who relied heavily on ATM services. It was part of broader efforts to drive financial inclusion and electronic payment adoption.

However, with the latest adjustment set to take effect on March 1, 2025, the pendulum is swinging in the opposite direction. The CBN’s new policy introduces a ₦100 fee for every ₦20,000 withdrawal at bank-owned ATMs and a ₦100 base fee plus up to ₦450

in surcharges for interbank withdrawals. International withdrawals will now carry a “cost-recovery charge” determined by foreign acquirers.

This shift highlights the increasing cost of banking operations and the need for financial institutions to balance service sustainability with customer affordability. The removal of three free remote-on-us transactions further signals a transition toward a cost-recovery model, where users bear the full weight of convenience.

As Nigerians brace for these changes, the broader question remains: How will this impact financial inclusion and cash-based transactions? While the CBN justifies the review as necessary for efficiency, customers will inevitably reconsider their reliance on ATM withdrawals, possibly shifting towards mobile and digital banking solutions.

From the fee reduction in 2019 to the impending hike in 2025, ATM charges have become a touchpoint in Nigeria’s evolving banking ecosystem. The coming months will reveal whether this latest adjustment improves efficiency as intended—or whether it drives consumers further towards alternative transaction methods.