The Central Bank of Nigeria (CBN) has defended its recently announced policy imposing charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than the customer’s own bank. According to the CBN, the policy is mutually beneficial to both banks and customers.
Acting Director of the Financial Policy and Regulation Department, John Onojah, explained that the policy aims to address the issue of cash shortages at ATMs while also helping banks recover costs. “With this policy, customers will no longer experience cash shortages at ATMs, and banks will be able to recover their costs,” Onojah said.
The CBN has set a minimum withdrawal limit of N20,000 at ATMs, ensuring that customers have access to cash when needed. Additionally, the policy encourages banks to deploy ATMs in remote locations, making cash more accessible to a wider population.
Onojah emphasized that the charges only apply to withdrawals from other banks’ ATMs, not from the customer’s own bank’s ATMs. The CBN has directed banks to apply a charge of N100 per N20,000 withdrawn from other banks’ ATMs, effective March 1, 2025. An additional surcharge of not more than N500 per N20,000 will apply for off-site ATMs.
The CBN believes that this policy strikes a balance between the needs of banks and customers, promoting a more efficient and accessible cash withdrawal system.
