A FinTech Executive and Techpreneur, Tope Dare, has warned that the Central Bank of Nigeria’s revised ATM withdrawal fees, set to take effect on March 1, 2025, will hurt low-income Nigerians while benefiting wealthier individuals.
“This policy ultimately favors those who can afford to withdraw larger sums, while the average Nigerian, who withdraws in smaller amounts, bears the brunt.
“For many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Now, they face unfair charges that wealthier Nigerians can easily avoid,” he stated.
According to Dare, 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 in locations like malls and fuel stations.
Meanwhile, he further mentioned that while the CBN insists the policy is necessary for banks to recover operational costs and expand ATM networks, critics argue that it disproportionately targets those who withdraw small amounts frequently.
According to the expert, a recent street survey further highlighted public frustration.
He said many respondents expressed their concerns over the elimination of three free interbank withdrawals per month, which previously allowed them to access funds from any ATM without penalty.
Also, consumer rights group Socio-Economic Rights and Accountability Project (SERAP) has already taken legal action against the CBN, calling the policy “unfair, unreasonable, and unjust.”
SERAP argued that the revised fees violate sections of the Federal Competition and Consumer Protection Act, which aims to prevent exploitation and ensure fair market practices.
However, Dare said 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.
He stressed that Nigeria was already struggling with financial inclusion, with at least 31 per cent of the population lacking sufficient education to navigate complex banking policies.
He added that many worry that confusion over the new charges could drive people away from formal banking, increasing reliance on costly and unregulated alternatives.
“The CBN should focus on making banking more accessible, not discouraging small transactions.
“If this policy must stand, there should be exemptions or lower fees for small withdrawals to protect vulnerable Nigerians,” he mentioned.
Dare noted that “As the implementation date approaches, public pressure on the CBN continues to mount. Whether the apex bank will reconsider the policy or push forward despite growing opposition remains to be seen.”
However, Dare stated that “Without adjustments, Nigeria’s most financially vulnerable citizens stand to lose the most.”
