The Cloud Network Foundation (CNF) has urged the Federal Government to reconsider the new ATM fees on withdrawal, recently introduced by the Central Bank of Nigeria (CBN), warning that such policies will further worsen the financial strain on Nigerians.
The CBN, in its latest directive, announced that customers will now be charged N100 for every N20,000 withdrawn from an ATM operated by a bank other than their own. While withdrawals from ATMs of a customer’s own bank will remain free of charge, using another bank’s ATM within its premises will attract the stated ATM fees.
For withdrawals from off-site ATMs—those located outside bank premises—customers will not only pay the N100 per N20,000 withdrawal fee but may also be subjected to an additional surcharge of up to N500. This surcharge, according to the CBN, will be retained by the ATM deployer or acquirer and must be disclosed at the point of withdrawal. Additionally, the CBN confirmed that international ATM withdrawals will attract charges at the rate set by the international acquirer.
Rising Costs, Declining Value: The Burden of New ATM Fees and Economic Strain in Nigeria
The CBN justified these new charges by citing increasing operational costs and the need to improve ATM service efficiency. However, this policy comes on the heels of a 50% tariff increase for telecom services, recently approved by the Federal Government.
It is important to note that these latest cost hikes follow earlier increases in petrol and electricity prices, both of which have significantly impacted the cost of living in Nigeria. While these policies are expected to boost revenue for both the government and industry operators, they have made life even more difficult for ordinary Nigerians, many of whom struggle daily to afford basic necessities.
Although industry operators often justify price hikes with promises of better service delivery, many Nigerians do not feel they are getting value for money. Worse still, despite the additional revenue generated from these increases, the federal government has not provided substantial improvements in infrastructure or public services that justify these extra costs imposed on citizens.
In response to the new ATM fees, Mr. Abimbola Tooki, Chairman of the Cloud Network Foundation, issued a statement condemning the policy and urging the government to reconsider. CNF had previously criticized the telecom tariff hike, and it is now reiterating its position against policies that place unnecessary financial pressure on Nigerians.
“If the federal government continues to approve policies that increase the burden on the masses, one wonders which government agency will be next to introduce yet another round of charges,” Tooki remarked.
He emphasized that instead of passing excessive costs onto consumers, the government should focus on creating an enabling environment for businesses to operate efficiently. By reducing regulatory bottlenecks and addressing operational challenges faced by service providers, the government can ensure that businesses remain profitable without shifting the financial burden onto already overburdened Nigerians.
As economic hardship deepens across the country, CFN is calling on the Federal Government to prioritize policies that ease the cost of doing business and, in turn, reduce financial stress on ordinary citizens. Instead of continuously approving price hikes across essential services like banking, telecommunications, fuel, and electricity, the government should focus on stabilizing the economy and improving purchasing power.
CNF insists that unless urgent measures are taken to cushion the financial burden on citizens, Nigeria’s economic situation will continue to deteriorate, leaving millions in distress.
Stay informed on the latest financial policies affecting you. Read more on how the new ATM Fees impact Nigerians and what experts are saying. Visit LouisaOlaniyi.com.ng for in-depth analysis and updates.”
