How Nigerians Are Reacting to CBN’s ATM Withdrawal Directives

The recent directives from the Central Bank of Nigeria (CBN) regarding ATM withdrawals have once again sparked debates among Nigerians, many of whom are already burdened by multiple banking policies that seem to tighten access to their own money.

While the CBN has maintained that these policies are aimed at financial stability and digital adoption, the everyday Nigerian sees them as yet another inconvenience in a system that is becoming increasingly expensive to navigate.

Nigerians Reactions to CBN’s New ATM Withdrawal Charges

The Central Bank of Nigeria’s (CBN) recent directive to eliminate the three free monthly ATM withdrawals from other banks’ machines has ignited a wave of reactions across social media platforms. Under this new policy, effective from March 1, 2025, customers will incur a ₦100 fee for every ₦20,000 withdrawn from another bank’s ATM.

On X (formerly Twitter), users have expressed their dissatisfaction and concern over the additional financial burden. One user lamented, “Nigerians are getting poorer, yet APC politicians are desperate to enrich themselves. Welcome to ‘change.’ ATM withdrawal fees are now ₦100.”

Another user highlighted the inconvenience of existing withdrawal limits, stating, “They should also increase/remove the limit they placed on ATM withdrawals. Nobody is going to spend hours in a queue just to withdraw only 5k.”

On Facebook, discussions have been equally fervent. A post by Daily Times Nigeria detailed the new charges, noting that while withdrawals from a customer’s own bank’s ATM will remain free, using another bank’s ATM will now attract a ₦100 fee per ₦20,000 withdrawn.

The CBN has justified this policy change by citing rising operational costs and the need to enhance ATM efficiency. However, many Nigerians feel that this move further restricts their access to cash and imposes additional financial strain, especially in a challenging economic climate.

But this is not the first time the CBN has introduced such controversial policies. A quick look at recent history shows a pattern of monetary decisions that, rather than offering relief, have only added to the financial strain of individuals and businesses.

A Brief History of ATM Charges in Nigeria

Nigerians have long had a complicated relationship with ATM charges. Before 2017, banks were allowed to charge N65 after the third withdrawal from another bank’s ATM within a month. However, due to public backlash, this charge was reduced to N35 in December 2019. Despite this minor relief, the burden of transaction fees has only increased over time.

Then came the cashless policy drive, which introduced additional costs such as:

• Cash deposit and withdrawal limits: Transactions above a certain threshold attracted extra charges.
• Stamp duty fees: A N50 charge on transactions of N10,000 and above.
• Transfer fees: Charges for moving funds between accounts, even within the same bank.

Each of these policies has sparked frustration, especially as electronic banking alternatives—though encouraged—often come with their own hidden costs, such as network failures and increased service charges.

Current CBN Directives: A Step Forward or Backward?

The latest directive on ATM withdrawals appears to be another push toward limiting cash transactions and promoting digital banking. However, rather than embrace the move, many Nigerians see it as another way to restrict access to physical cash while banks continue to charge various fees for digital transactions.

For example, with unreliable POS transactions, failed transfers, and frequent system downtimes, cash remains a safer option for many. This is particularly true for small businesses and rural dwellers, where digital adoption is slow and financial inclusion remains a work in progress.

Are Nigerians Suffering from Policy Fatigue?

Over time, policies like these have left citizens questioning whether the financial system is designed for their benefit or simply as a revenue-generating machine for banks and regulators. The constant introduction of new charges, coupled with economic pressures like inflation and high fuel prices, has fueled what can best be described as policy fatigue.

Many Nigerians now feel that they are being taxed at every turn—whether through fuel subsidies removal, electricity tariff hikes, or endless banking deductions. As one Lagos-based trader put it:

“Even to collect my own money, they want to charge me. What kind of system is this?”

The government and CBN argue that these policies are necessary for economic stability, but public perception is quite different. For many, it feels like a constant cycle of paying more for less access.

At the end of the day, trust in the banking system can only grow when people feel that policies serve their interests, not just those of financial institutions. Until then, the frustration surrounding each new CBN directive will only deepen, as Nigerians continue to ask: At what cost are these policies truly serving us?