Business
Shehu Sani slams CBN over hike in ATM charges, as apex threatens banks with sanctions
Activist and former senator representing Kaduna central, Shehu Sani has criticised the Central Bank of Nigeria (CBN) for scrapping free Automated Teller Machine (ATM) withdrawals for customers using other banks’ ATMs.
The CBN on Tuesday, through a circular announced the removal of the three free monthly withdrawals previously allowed for such transactions.
According to the circular dated February 10, 2025, and signed by Acting Director of the Financial Policy and Regulation Department, John Onojah, banks and financial institutions are to implement the new ATM withdrawal charges starting March 1, 2025.
Under the new policy, customers withdrawing from another bank’s ATM will be charged N100 per N20,000 withdrawal within bank premises.
For withdrawals at off-site ATMs, an additional surcharge of up to N500 will apply. The surcharge, which will serve as income for the ATM deployer, must be disclosed at the point of withdrawal.
Reacting to the development in an X post on Thursday, Sani warned that the continuous increase in ATM charges could push Nigerians back to physically cashing their cheques inside bank halls.
He wrote, “If the CBN continue to increase ATM charges, people will return to the era of physically entering the Bank to cash their cheques.”
CBN to sanction banks over ATM withdrawal limits
Meanwhile, the apex bank has warned that it will sanction banks that force customers to withdraw less than N20,000 per transaction from Automated Teller Machines (ATMs) despite having sufficient funds and requesting a higher amount.
This was disclosed in a Q&A explainer released by the apex bank following its recent review of ATM withdrawal fees.
The CBN emphasized that ATM charges for withdrawals made from other banks’ ATMs both on-site and off-site, are based on the expectation that customers can withdraw up to N20,000 per transaction.
It stated: “Any bank that compels a customer with sufficient funds in their account to withdraw less than N20,000 per transaction, against their desire for a higher sum, would be contravening this regulation and will be sanctioned appropriately.”
The CBN encouraged affected customers to file complaints against banks that impose unnecessary restrictions.
“Consumers denied the right to withdraw up to N20,000 per transaction are encouraged to file a complaint with the CBN using [email protected].”
The CBN further clarified that banks are not allowed to charge more than the prescribed ATM fees, though they can charge less depending on their cost structure and business model.
“The charges and surcharges are capped, meaning banks and other financial institutions cannot charge more than the fees stated in the circular. However, a bank can charge a lower amount depending on its cost structure and business development drive.”
The CBN advised customers to withdraw cash from their own bank’s ATMs to avoid extra charges. It also encouraged customers to explore alternative payment options such as mobile banking apps, POS terminals, and other digital payment channels to minimize ATM withdrawal fees.
