Nigeria’s former Senator, Shehu Sani, has condemned the Central Bank of Nigeria’s (CBN) decision to scrap free Automated Teller Machine (ATM) withdrawals for customers using other banks’ ATMs.
The CBN announced the removal of the three free monthly withdrawals previously allowed, effective March 1, 2025. Customers will now be charged N100 per N20,000 withdrawal at ATMs located within bank premises, and N100 per N20,000 withdrawal plus a surcharge of up to N500 at off-site ATMs.
Sani expressed his dissatisfaction with the decision, stating that it would lead to a return to the old days of physically entering banks to cash cheques. “If the CBN continues to increase ATM charges, people will return to the era of physically entering the bank to cash their cheques,” he wrote.
The CBN’s decision aims to accelerate the deployment of ATMs across the country and ensure financial institutions apply appropriate charges for their services. However, Sani’s concerns highlight the potential impact on Nigerians who rely heavily on ATM withdrawals.
The new charges may disproportionately affect low-income individuals and those living in rural areas with limited access to banking services. This could exacerbate financial exclusion and hinder the country’s progress towards achieving financial inclusion goals.
Sani’s criticism of the CBN’s decision underscores the need for policymakers to consider the broader implications of their decisions on the most vulnerable members of society. As the country continues to navigate the challenges of financial inclusion, it is essential to prioritize policies that promote accessibility, affordability, and equity in financial services.
