The Central Bank of Nigeria (CBN) has explained that its new policy, which imposes charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than the customer’s own, is designed to benefit both banks and customers.
John Onojah, Acting Director of the Financial Policy and Regulation Department at CBN, shared this on Channels Television’s Sunrise program on Saturday.
Onojah stated that the policy aims to eliminate complaints about cash shortages at ATMs while helping banks recover costs.
He mentioned that with the new system, customers will no longer be told that there is no money available at ATMs.
Additionally, a minimum withdrawal amount of N20,000 has been set for customers. He also explained that even in remote areas, ATMs will be available off-bank premises, ensuring wider access to cash.
He highlighted that deploying ATMs is a costly process for banks, and the new charges are intended to help them recover these expenses.
While the policy aims to support banks, Onojah emphasized that customers will still have access to cash at their own bank’s ATMs without incurring any fees.
The CBN’s recent circular, issued on Tuesday, stated that customers withdrawing from another bank’s ATM would now incur a ₦100 fee for every ₦20,000 withdrawn.
Furthermore, the three free monthly withdrawals previously allowed at other banks’ ATMs will no longer apply.
Starting March 1, 2025, banks will also impose a surcharge of up to ₦500 for withdrawals from off-site ATMs, such as those located in shopping malls or eateries, in addition to the N100 fee for using other banks’ ATMs.
