New ATM Withdrawal Fees: CBN Reveals Reason for Hike

The Central Bank of Nigeria (CBN) has defended its decision to raise fees for cash withdrawals from other banks’ automated teller machines (ATMs) by claiming that the action is intended to encourage banks to enhance cash availability at their ATMs.
Following its meeting of the Monetary Policy Committee (MPC) on Tuesday, the apex bank reportedly declared that it would maintain key economic indicators by keeping the MPR at 27.5%.
After the meeting, CBN Governor Olayemi Cardoso spoke to reporters and defended the hike in ATM withdrawal fees, which are currently N100 for every N20,000 taken out of an ATM at another bank.

“The goal of the policy is to incentivize banks to increase the amount of cash available at ATMs and to expand their network of ATMs,” he explained.
In order to guarantee consistent access to cash at their ATMs and enable trouble-free money withdrawals, banks must be encouraged to do so. Even though things have improved, everything still needs to go smoothly and flawlessly,” he stated.

Cardoso insisted that the new fee would improve financial efficiency and eliminate predatory cash withdrawal services, dismissing worries that it would discourage consumers from using cash.

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“You won’t be charged if you take out money from the ATM at your own bank. To prevent fees, you can apply for a card with the bank whose ATM you regularly use. He continued, “This policy will promote a wider spread of ATMs and facilitate easier access to money.”

The CBN anticipates that the action will deter unlicensed cash handlers from overcharging customers for cash withdrawals, hence increasing the effectiveness of Nigeria’s banking system.