By Tahir Ahmad
The Central Financial institution of Nigeria (CBN) lately carried out its revised ATM withdrawal prices, a transfer that has sparked widespread frustration amongst Nigerians. Underneath the brand new coverage, which took impact on March 1, 2025, financial institution prospects are actually required to pay ₦100 for money withdrawals as much as ₦20,000 from ATMs not operated by their banks.
Along with this, off-site ATMs—these not positioned inside financial institution premises—entice an additional surcharge of as much as ₦500 per transaction. Whereas the CBN defends these prices as a way to encourage banks to enhance money availability at ATMs, the fact on the bottom tells a special story.
Relatively than benefiting Nigerians, the coverage seems to position extra monetary pressure on residents already fighting financial hardships. Nigerians have lengthy confronted the issue of inaccessible money at ATMs, with many pressured to depend on Level-of-Sale (POS) operators to fulfill their money wants.
Over time, POS transactions have turn into the default withdrawal methodology for thousands and thousands, not by selection however by necessity. The first motive behind this shift is that financial institution ATMs are sometimes empty, leaving prospects with no choice however to patronize POS operators, who, in flip, impose their very own withdrawal prices.
There’s a rising notion that banks intentionally hold their ATMs understocked as a result of they discover it extra worthwhile to produce money to POS operators as a substitute. Relatively than addressing this basic difficulty, the CBN’s coverage successfully forces folks to pay much more for an already damaged system.
This growth is especially worrisome for rural dwellers, the place banking infrastructure stays insufficient. In lots of small cities and villages, financial institution branches are few and much between, and ATMs are both non-existent or not often practical.
The absence of dependable options signifies that rural Nigerians rely closely on POS operators for money transactions. By making withdrawals costlier, the CBN is additional marginalizing those that have already got restricted entry to formal monetary companies.
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At a time when digital banking stays unreliable as a result of poor web connectivity and energy provide points, this coverage does extra hurt than good. As a substitute of selling monetary inclusion, it successfully pushes many Nigerians additional away from the formal banking system.
The CBN’s justification for the brand new withdrawal prices is centered on the declare that it’ll encourage banks to keep up higher money availability at their ATMs and discourage the hoarding of money exterior the banking system.
Nonetheless, earlier will increase in service prices throughout completely different sectors, together with electrical energy tariffs and telecommunications charges, haven’t led to any notable enhancements in service supply. There may be little motive to consider that this new coverage will probably be any completely different. The worry amongst many.
Nigerians is that, reasonably than compelling banks to serve their prospects higher, the coverage will merely enable them to generate extra income whereas bizarre residents bear the brunt of upper transaction prices.
If the CBN genuinely seeks to enhance the effectivity of money withdrawals within the nation, it should start by guaranteeing that banks make cash available at their ATMs. Withdrawal prices shouldn’t be used as a instrument to compel prospects to undertake cashless transactions when the infrastructure to help such a transition stays weak.
The perfect answer could be for the CBN to position stricter laws on banks to make sure they prioritize ATM money provide as a substitute of utilizing it as a enterprise alternative to revenue from POS transactions. Moreover, earlier than implementing any monetary insurance policies that immediately influence bizarre residents, the CBN ought to conduct an intensive evaluation of how they may have an effect on completely different segments of society, notably these in rural areas who’ve restricted banking entry.
Relatively than including to the monetary burdens of Nigerians, the CBN ought to give attention to insurance policies that improve monetary accessibility and ease of banking. The present withdrawal prices solely function an unjust tax on individuals who merely need to entry their very own cash.
Till banks can assure environment friendly service supply and be sure that ATMs are sufficiently stocked, this coverage ought to be reconsidered. Banking ought to be about service, not exploitation, and any coverage that disproportionately impacts probably the most susceptible should be referred to as into query.
Tahir Ahmad is a corps member with PRNigeria Centre, Abuja. E mail: [email protected].
