A FinTech executive and techpreneur, Tope Dare, has expressed concerns over the Central Bank of Nigeria’s (CBN) revised ATM withdrawal fees, set to come into effect on March 1, 2025. Dare warned that the new charges would negatively impact 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,” Dare stated. He pointed out that for many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Under the new policy, these individuals will face unfair charges, which wealthier Nigerians can easily avoid.
The revised policy introduces a tiered fee structure, charging N100 per N20,000 withdrawal at ATMs located within bank premises and up to N500 for withdrawals from off-site ATMs in locations like malls and fuel stations. Despite the CBN’s assertion that the policy is designed to help banks recover operational costs and expand ATM networks, critics argue that it disproportionately affects those who frequently withdraw smaller amounts.
Dare also cited a recent street survey, which revealed public frustration over the elimination of three free interbank withdrawals per month. This previously allowed individuals to access funds from any ATM without incurring a fee. Consumer rights group Socio-Economic Rights and Accountability Project (SERAP) has already taken legal action against the CBN, labeling the policy as “unfair, unreasonable, and unjust.”
According to SERAP, the new charges violate sections of the Federal Competition and Consumer Protection Act, which aims to prevent exploitation and ensure fair market practices. Dare emphasized that the lawsuit seeks to have the policy overturned due to its disproportionate impact on the poor.
Beyond the immediate financial burden, Dare warned of potential long-term consequences. He highlighted that Nigeria already struggles with financial inclusion, with at least 31 percent of the population lacking sufficient education to navigate complex banking policies. Many Nigerians are concerned that confusion surrounding the new charges could drive them away from formal banking, increasing reliance on costly and unregulated alternatives.
“The CBN should focus on making banking more accessible, not discouraging small transactions,” Dare suggested. He called for exemptions or lower fees for small withdrawals to protect vulnerable Nigerians, emphasizing that this could help mitigate the negative impact on those who need it most.
As the implementation date approaches, public pressure on the CBN is mounting. Whether the apex bank will reconsider the policy or move forward despite growing opposition remains uncertain. However, Dare stressed, “Without adjustments, Nigeria’s most financially vulnerable citizens stand to lose the most.”