Starting March 2025, new fees will be implemented for cash withdrawals at ATMs of other banks in Nigeria. This measure has sparked diverse reactions from the public and is likely to influence cash withdrawal habits.
Changes in ATM Transaction Fees
The Central Bank of Nigeria (CBN) is introducing new fees for cash withdrawals at ATMs belonging to other banks. From March 2025, a fee of ₦100 will be applied for every withdrawal of less than ₦20,000 at another bank’s ATM. ATMs located in public areas will carry an additional ₦500 surcharge per transaction.
Public Response
Many Nigerians have reacted negatively to these changes. A survey showed that 85% of participants believe the new fees are unfair, especially against the backdrop of rising costs of goods and services. Amidst economic challenges, this policy is seen as an additional financial burden.
Potential Impact and Conclusions
These changes might accelerate the shift towards the use of POS terminals and cashless transactions. The new banking policy might lead to a decline in ATM usage, especially in areas with scarce bank-owned machines. Small business owners and individuals making frequent withdrawals may find the new fees unsustainable.
The introduction of new ATM transaction fees in Nigeria could significantly impact citizens' preferences for cash withdrawal methods. In the current economic climate, this change highlights the need for alternative solutions to enhance banking services.
