BREAKING NEWS: Nigerian Banks has Started Charging ₦100 Fee on ATM Cash Withdrawals

Nigerian Banks Introduce ₦100 Fee on ATM Cash Withdrawals Starting Today

In a move that is expected to stir reactions among bank customers, Nigerian banks have commenced the implementation of a ₦100 fee on every ATM cash withdrawal, effective immediately.

The new charges come as part of revised banking policies aimed at encouraging cashless transactions while also addressing operational costs associated with maintaining Automated Teller Machines (ATMs) across the country.

According to multiple sources within the banking sector, customers withdrawing cash from ATMs, whether using their bank’s own machines or those of other financial institutions, will now incur an additional ₦100 charge per transaction. This is separate from existing interbank withdrawal fees, which apply when using another bank’s ATM.

The Central Bank of Nigeria (CBN) has yet to issue an official statement on the policy shift, but several commercial banks have reportedly sent notifications to customers informing them of the new charges.

Many Nigerians have expressed frustration over the development, citing the already high cost of financial transactions, including transfer fees and other bank charges. The new fee, they argue, will further burden the public, especially those who rely heavily on cash transactions for their daily needs.

Financial experts believe this move aligns with the CBN’s long-term vision of promoting a cashless economy, reducing dependence on physical cash, and strengthening digital payment systems. However, concerns remain over the availability and reliability of alternative payment channels, such as mobile banking and point-of-sale (POS) transactions, particularly in rural areas with limited internet access.

As the new ATM withdrawal charge takes effect, banking customers are advised to explore digital banking options, including mobile apps, USSD services, and online transactions, to minimize costs. However, whether this policy will be reconsidered following public outcry remains to be seen.