The Central Bank of Nigeria (CBN) has defended its new 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.
Speaking on Channels Television’s Sunrise programme, CBN’s Acting Director of 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 their costs.
“With this policy, customers can now withdraw at least N20,000 from any ATM without being told that there is no cash,” Onojah said. “We have also ensured that ATMs are available in remote locations, and banks will be able to recover their costs through the new charges.”
The new policy, which takes effect on March 1, 2025, imposes a charge of N100 per every N20,000 withdrawn from another bank’s ATM. Additionally, a surcharge of not more than N500 per every N20,000 will apply for off-site ATMs, such as those at shopping malls and public places.
Onojah emphasized that the charges only apply to withdrawals from other banks’ ATMs, and customers will not be charged for withdrawals from their own bank’s ATMs.
The CBN believes that the new policy will strike a balance between ensuring customers have access to cash and helping banks recover their costs.