The Central Bank of Nigeria’s (CBN) revised ATM withdrawal fees, set to take effect on March 1, 2025, have sparked concerns that low-income Nigerians will be disproportionately affected.
FinTech executive Tope Dare warned that the policy favors those who can afford to withdraw larger sums, while the average Nigerian who withdraws smaller amounts will bear the brunt.
The new policy introduces a tiered fee structure, charging N100 per N20,000 withdrawal at ATMs within bank premises and up to N500 for withdrawals from off-site ATMs. Critics argue that this policy targets those who withdraw small amounts frequently, such as low-income earners and small business owners.
Dare noted that the elimination of three free interbank withdrawals per month will further exacerbate the issue. A recent street survey highlighted public frustration, with many respondents expressing concerns over the new charges.
Consumer rights group Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the CBN, calling the policy “unfair, unreasonable, and unjust.” The lawsuit seeks to have the policy overturned, citing its disproportionate effect on the poor.
Beyond the direct financial impact, Dare warned of potential long-term consequences, including decreased financial inclusion. Nigeria already struggles with financial inclusion, with at least 31% of the population lacking sufficient education to navigate complex banking policies.
The CBN should focus on making banking more accessible, not discouraging small transactions, Dare suggested. Exemptions or lower fees for small withdrawals could protect vulnerable Nigerians. As the implementation date approaches, public pressure on the CBN continues to mount.
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