Public Outcry Trails Banks Implementation of N100, N500 ATM.

Banks throughout Nigeria have started to enforce the new automated transaction commissions of Teller Machine (ATM) following a directive from the central bank of Nigeria (CBN), arousing a widespread dissatisfaction between customers.

A visit to several ATM galleries in Abuja and its surroundings on Sunday revealed that while the money was available in machines, many customers expressed frustration for additional expenses.

Luke Abudu, a customer of First Bank Long Nyanya-Jikwoyi Road, criticized politics, affirming that it affects the low-income earnings in an disproportionate way.

“This policy will discourage people from keeping money in banks. I collected ₦ 20,000 today and I was charged ₦ 100. For the owners of small businesses like me, this is a useless burden, “he complained.

In the same way, Victoria Adejo, who was seen in a Zenith Bank branch in Mararaba, claimed that the retreat of money from the point of sale (POS) had become a cheaper alternative to automatic doors.

“It is a pity that our government introduces policies without considering the struggles of ordinary citizens. They argue that the charges aim to improve ATM services, yet we still pay for the service costs separately, “he said.

Nurudeen Ehimotor, a customer of the Guaranty Trust Bank (GTB) in Asakoro, Abuja expressed concern about the fact that banks could intentionally discourage online transactions to force more use of ATMs and generate higher commissions.

“I tried to transfer money using Ussd for a whole day without success. My banking app doesn’t work, so I had no other choice than to use the ATM. It seems that they are deliberately making transactions online difficult to push people to automatic doors and make more money, “he said, asking banks to reduce the growing number of charges imposed on customers.

The CBN, in a circular issued on February 10, ordered all financial institutions to start implementing the ATM transaction commissions magazines from 1 March.

According to the directive, customers who withdraw cash from the ATM of their bank (transactions on the United States) would not be charged, while the withdrawals from the ATM of another bank (transactions not on the Americans) would attract a commission of ₦ 100 per ₦ 20,000.

For withdrawals carried out in the automatic counters located outside the premises of a bank, such as shopping centers, airports and other autonomous cash points – an additional supplement would apply up to ₦ 500 per ₦ 20,000.

The banks quickly informed their customers of the changes via and -mail, with GTB that further informed its customers that the three free monthly withdrawals previously allowed in the automatic branches of the other banks would no longer be available.

In response to politics, the socio-economic project for rights and liability (Serap) invited President Bola Tinubu to order the Governor of the CBN Olayemi Cardoso to suspend the increase in commissions until an ongoing legal challenge is resolved.

Serap, who filed a cause against CBN last month, claims that the increase in ATM taxes is “illegal, unfair and unjust”.

The organization insists that proceeding with the implementation of the commissions while the case is underway under the judicial trial and the rule of law.

In an open letter dated 1 March 2025, signed by the deputy director of Serap Kolawole Oluwadare, the organization urged the president to look for a legal consultant by the prosecutor general of the Federation on the fact that the CBN has the authority to impose the accusations while a cause is still before the Federal Court in Lagos.

“The suspension of the excursion of ATM taxes would allow the Court to listen and correctly determine the case. The implementation of the accusations while the matter is in court would be a direct face to the rule of law and make a mockery of the judicial system, “said the letter.

With the start of the growth of public and ongoing discontent, the next few weeks will determine whether the CBN proceeds with politics or if the pressure of consumers and defense groups forces a reconsideration.