Professional requires assessment of latest CBN ATM withdrawal charges amid public outcry
Economist Dr. Augustine Kutu has suggested the Central {Bank} of Nigeria (CBN) and policymakers to deal with the issues of Nigerians concerning the brand new costs on Automated Teller Machine (ATM) transactions.
Beneath the revised price construction, which took impact on March 1, 2025, business banks are actually charging prospects N100 per N20,000 withdrawal from on-site ATMs and N600 for off-site ATM withdrawals.
The CBN issued a round on February 10, 2025, to all banks and {financial} establishments, asserting the assessment of ATM transaction charges. Based on the brand new tips, withdrawals from one’s personal {bank} ATMs will stay freed from cost.
Nevertheless, prospects withdrawing N20,000 or much less from one other {bank}’s ATM will incur a N100 price per transaction. The CBN cited rising prices and the necessity to enhance the effectivity of ATM providers within the banking trade as causes for the brand new costs.
Residents categorical concern
Dr. Kutu, an Assistant Professor on the College of Western Ontario-Canada, famous that whereas residents have expressed issues that the coverage reduces their buying energy, imposes a {financial} burden, and discourages financial savings, banks argue that the fees are essential to offset their operational bills and stimulate the financial system.
“As a part of the financial coverage framework, the CBN regulates {bank} costs and deductions, together with these associated to money transactions and account upkeep. These costs fluctuate throughout banks and rely on the precise sort of transaction.”
Based on the Central {Bank} of Nigeria (CBN), the reintroduction of costs on sure money deposits and withdrawals is to advertise a contemporary and environment friendly cost system. “It goals to cut back the nation’s reliance on money transactions, which may be pricey and hinder {economic} improvement,” stated Dr. Kutu.
Dr. Kutu emphasised that the coverage would doubtless discourage extreme money dealing with, decrease operational prices, and encourage Nigerians to undertake different cost strategies, equivalent to digital transactions. Nevertheless, he acknowledged that the nation’s present {economic} local weather poses vital challenges to the coverage’s effectiveness.
“Paramount amongst these challenges are safety issues, as digital cost techniques are weak to cyber threats and information breaches. Moreover, unreliable infrastructure, together with restricted entry to the web and energy, hinders the widespread adoption of digital cost strategies.
“The low digital literacy, significantly in rural areas, and the latest approval of a fifty % hike in telecom tariffs could proceed to discourage Nigerians from embracing the brand new coverage. To make sure the profitable implementation and adoption of the coverage, policymakers should first sort out urgent buyer issues, together with the regular improve in telecom tariffs, cybercrime fears, and technical points,” Dr. Kutu stated.
What you need to know
- He additionally suggested the CBN to contemplate different measures, equivalent to implementing a downward assessment of ATM and Level of Gross sales (POS) transaction service charges, in addition to interbank costs, to lower {financial} burdens on prospects.
- “There also needs to be elevated entry to ATMs and POS terminals, significantly in rural areas, to advertise {financial} inclusion,” he stated.
Dr. Kutu additional urged the event of Info and Communication Know-how (ICT) infrastructure in rural areas to bridge the digital divide and facilitate entry to digital {financial} providers.