Nigerians React As CBN Raises ATM Withdrawal Fees – See Their Reasons

The Central Bank of Nigeria (CBN) has defended its decision to increase charges on cash withdrawals from ATMs of other banks, stating that the move is intended to encourage banks to enhance cash availability at their ATMs.....KINDLY READ THE FULL STORY HERE▶

At the conclusion of its Monetary Policy Committee (MPC) meeting on Tuesday, the apex bank also announced the retention of the Monetary Policy Rate (MPR) at 27.5%, keeping key economic indicators stable.

Addressing journalists after the meeting, CBN Governor Olayemi Cardoso justified the increase in ATM withdrawal charges, which now stands at N100 per N20,000 withdrawn from another bank’s ATM.

He explained that the policy is designed to push banks to ensure better cash access at ATMs and expand their ATM networks.

“Banks need incentives to maintain consistent cash availability at their ATMs, ensuring people can withdraw money without difficulties. While the situation has improved, we aim for a seamless experience,” Cardoso stated.

He dismissed concerns that the new charges would discourage cash withdrawals, arguing instead that the policy would enhance financial efficiency and curb exploitative withdrawal practices.

“Withdrawing from your own bank’s ATM remains free. If you frequently use another bank’s ATM, you can obtain a card from that bank to avoid charges. This policy will promote the expansion of ATMs and improve cash access,” he added.

The CBN expects the measure to discourage informal cash handlers from overcharging for withdrawals, ultimately boosting efficiency in Nigeria’s banking sector.