A fintech executive and technology entrepreneur, Tope Dare, has expressed concerns that the Central Bank of Nigeria’s (CBN) newly revised ATM withdrawal fees, set to take effect on March 1, 2025, will disproportionately affect low-income Nigerians while favouring wealthier individuals.
“This policy ultimately favors those who can afford to withdraw larger sums, while the average Nigerian, who withdraws in smaller amounts, bears the brunt.
“For many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Now, they face unfair charges that wealthier Nigerians can easily avoid,” he stated.
According to The Punch, Dare explained that under the new policy, ATM withdrawals made at bank premises would incur a charge of N100 per N20,000 transaction, while withdrawals from off-site ATMs in locations such as malls and fuel stations could attract fees as high as N500.
While the CBN insists that these charges are necessary for banks to recover operational costs and expand ATM infrastructure, critics argue that the policy unfairly targets individuals who rely on frequent small withdrawals.
Public Backlash and Legal Action Against the Policy
Dare noted that a recent street survey revealed public dissatisfaction, with many Nigerians frustrated over the removal of the previous three free interbank withdrawals per month, which had allowed customers to access funds from any ATM without penalties.
Consumer rights advocacy group, the Socio-Economic Rights and Accountability Project (SERAP), has already taken legal action against the CBN, describing the revised charges as “unfair, unreasonable, and unjust.”
SERAP argues that the policy violates provisions of the Federal Competition and Consumer Protection Act, which is designed to prevent market exploitation and ensure fair business practices.
Potential Long-Term Consequences
Beyond the immediate financial burden, Dare warned of broader implications for financial inclusion in Nigeria. He pointed out that approximately 31% of Nigerians lack the financial literacy needed to navigate complex banking regulations, and the confusion surrounding these new charges could push more people toward informal and unregulated financial alternatives.
“The CBN should focus on making banking more accessible, not discouraging small transactions.
“If this policy must stand, there should be exemptions or lower fees for small withdrawals to protect vulnerable Nigerians,” he urged.
As the implementation date nears, public pressure on the CBN continues to grow. Whether the apex bank will reconsider its stance or move forward with the new policy despite widespread criticism remains to be seen.
Dare, however, emphasized that “Without adjustments, Nigeria’s most financially vulnerable citizens stand to lose the most.”
