- Olayemi Cardoso, the governor of the Central Bank of Nigeria, said the newly revised Automated Teller Machine fee to make cash withdrawal seamless
- He said the policy was part of short, medium, and long-term solutions devised to prevent the cash scarcity witnessed during the yuletide
- Cardoso said the policy has long-term future benefits
The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the newly revised Automated Teller Machine (ATM) cash withdrawal fee will make for seamless service and ensure cash availability.
Cardoso noted that the policy, which was part of short-, medium-, and long-term solutions devised to prevent the cash scarcity witnessed during the yuletide, aims to prevent the exploitation of bank customers by cash merchants.
He stated this during a press conference at the end of the 299th meeting of the Monetary Policy Committee (MPC) on Thursday, February 20.
The CBN governor noted that though cash availability has improved, the new policy will ensure seamless cash withdrawals by incentivising banks to deploy more ATMs.
“This actually came as a result of efforts deployed when there was a shortage of currency, especially towards the Christmas period, and when people were experiencing undue hardship.
“We were meeting regularly, and I chaired a committee that convened daily to devise short-, medium-, and long-term solutions.
“The banks must be incentivised to ensure regular ATM availability so that people can access their money conveniently.
“While the situation has improved significantly, more needs to be done to make cash withdrawals seamless,” he said.
'Policy has future benefits'
Cardoso further stated that the policy may appear as another economic challenge, but it has future benefits.
He noted that the policy will encourage banks to ensure better services.
The CBN governor said, “If we are planning for the future, certain costs must be absorbed, and this is one of them.
“My view is that it will not dissuade people from accessing their money easily. Instead, it should encourage banks to ensure better service, especially where fees are charged for withdrawals.
“The good news is that withdrawing from your own bank remains free.
“If you frequently use another bank’s ATM, you can apply for a card with that bank to avoid charges.
“This measure will encourage the expansion of ATM services and make cash access easier.
“It will also discourage those who have exploited gaps in the system to charge exorbitant fees for cash withdrawals. Over time, this practice will be eliminated.”
CBN eliminated free ATM withdrawals from another bank
Recall that the CBN, in a circular dated February 10, 2025, announced the elimination of three free monthly withdrawals from another bank’s ATM, revising ATM transaction fees, which take effect on March 1.
With the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge. However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.
Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction. For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.
New N100 ATM charge not avenue to mop up cash – CBN
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) said the newly reviewed N100 Automated Teller Machine (ATM) charge for cash withdrawals at another bank’s ATM is not an avenue to mop up excess cash.
The acting Director of CBN’s Financial Policy and Regulation Department, John Onoja, stated this during an interview on Arise TV on Tuesday, February 18, where he talked about the apex bank’s latest directive on ATM transactions.
