Banks have been advised by the CBN to ensure that their customers obtain cash from their automated teller machines. This came after the apex bank announced the revised ATM transaction fees, emphasizing that ATM withdrawals will remain free....Read Full Article >>➤
Acting Director of the Financial Policy Dismissed speculations that it is an attempt to mop up excess cash in circulation.
As the hike in ATM transaction fees is set to go into effect on March 1, the Central Bank of Nigeria has advised banks to make sure that their customers can access cash at their ATMs. The CBN dismissed speculations to mop up excess cash in circulation.
In an interview with Arise TV on Tuesday, Acting Director of the Financial Policy and Regulation Department John Onoja revealed this while discussing the apex bank’ s most recent directive about ATM transactions.
On February 10, 2025, the apex bank published the updated ATM transaction costs in a CBN circular highlighting that bank ATM withdrawals will continue to be free under the updated fee schedule. However, at on- site ATMs, which are either inside or closely connected to a bank branch, users of ATMs operated by other banks will be charged N100 for any withdrawal of N20, 000 or less.
There will be an extra fee of up to N500 per transaction for off- site ATMs, which are located outside bank buildings in places like malls, gas stations, and other public areas. Charges for international ATM withdrawals will be determined by cost recovery, which means that consumers will be responsible for paying the precise amount that the foreign acquirer charges.
Nigerians who withdraw less than N20, 000 from an automated teller machine at another bank will still be assessed a cost of N100 per transaction, the CBN later disclosed.
Reason for move Speaking on the move, Onoja said it was partly due to the rising operational cost, saying, ” It’ s also one side on the part of the financial institution, so that they’ ll be able to also keep up with the cost of doing business and then offer value services to the customers, and also on the side of the customer, it is to be sure that they’ re going to have very quality service and value- added services from their bankers. ”
Dismissing speculations that it is an attempt to mop up excess cash in circulation, Onoja said, ” There are professional ways of dealing with excess liquidity in this system in Nigeria.
The CBN, as the apex monetary policy body in Nigeria, has different tools to deal with that. So, if it is to reduce cash in circulation as a result of inflation and all of that.
I’ m sure the Central Bank has better tools to use and is not going through the ATM issues. So, it is not in any way to reduce money in circulation. Rather, it is to even make the money available to those who need it.
” They want to ensure that Nigerians are not denied access to legitimate cash where it is needed. Because of that, there is a committee working on access to cash policy and ensuring that when Nigerians need cash, especially those who will need cash at the remote level, or those who need cash in places where, because of technology, they don’ t have access to using other things and other channels of payment, they will have cash in their pocket. ”
” Central Bank of Nigeria is not deploying ATMs because we do not have retail customers like individuals, as it were, so the ATMs are outlets to make a value available to their customers to be able to have access to cash.
The over- the- counter position is there, but not everybody will need to go to the banking hall to be able to get cash, especially when the volume is very small.
And so, it is the responsibility of the commercial banks to deploy outlets where their customers will be able to access cash when they need it, and if the machines are not available to their customers, that is where their customers will need to use the machines provided by other banks, and that is where the issue of paying 100 naira, as the case may be, will come in. ...Read Full Article >>➤
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