Nigerians will soon face higher costs for withdrawing cash, adding to the financial strain amid rising inflation. Banks and financial institutions have begun adjusting their withdrawal fees, making it more expensive for customers to access their money.
With the cost of living already surging, this increase is expected to spark concerns about affordability and accessibility, especially for those who rely heavily on cash transactions. As digital payments continue to grow, some experts believe this move is aimed at pushing Nigerians further toward cashless banking.
The Central Bank of Nigeria (CBN) has introduced new withdrawal charges to cover rising operational costs and improve ATM services. The move aims to push banks to deploy more ATMs while ensuring customers are charged appropriately for cash transactions.
What’s Changing?
Previously, Nigerians enjoyed three free withdrawals per month from other banks’ ATMs before incurring a ₦65 fee per transaction. That’s no longer the case—charges now apply from the first withdrawal at another bank’s ATM.
Here’s the breakdown of the new charges:
- Own bank’s ATM → Free withdrawals
- Another bank’s ATM (on their premises) → ₦100 per ₦20,000
- Off-site ATM (e.g., malls, supermarkets) → Extra surcharge of up to ₦500 per ₦20,000 (goes to the ATM provider)
- International withdrawals → Fees determined by the foreign bank
Pushing for a Cashless Economy
CBN has long advocated for a cashless economy, but cash remains king in Nigeria. While POS agents have made cash withdrawals more accessible, rising ATM and POS fees might force more Nigerians to switch to digital payments.
For many, it’s no longer just about convenience—it’s about cost. With cash withdrawals getting more expensive, Nigerians may turn to bank transfers, mobile banking, and digital wallets more frequently. Whether this shift benefits consumers or adds to their financial burdens depends on individual perspectives.