Re: CBN, withdraw new ATM charges
The editorial published by Daily Trust on February 27, 2025, titled ‘CBN, Withdraw ATM Charges’, critiques the Central Bank of Nigeria’s (CBN) decision to increase ATM withdrawal charges, effective March 1, 2025. CBN Governor Olayemi Cardoso argues that the policy is designed to incentivise banks to enhance cash availability and expand their ATM networks. However, […]
The editorial published by Daily Trust on February 27, 2025, titled ‘CBN, Withdraw ATM Charges’, critiques the Central Bank of Nigeria’s (CBN) decision to increase ATM withdrawal charges, effective March 1, 2025.
CBN Governor Olayemi Cardoso argues that the policy is designed to incentivise banks to enhance cash availability and expand their ATM networks. However, the editorial expresses skepticism, pointing out that previous price hikes—such as increases in electricity tariffs and telecom charges—have not translated into improved services.
It warns that the new charges could burden bank customers, disrupt Point of Sale (POS) operations, and undermine the cashless policy by encouraging more cash transactions.
The editorial urges the CBN to reconsider the policy and suspend its implementation until banks can guarantee efficient service delivery and improved ATM operations.
I agree with the editorial’s critique. The new withdrawal policy, combined with the recent increases in electricity and telecom tariffs, adds to the financial strain on Nigerians. Despite tariff hikes, electricity supply remains unreliable, and internet connectivity issues persist, showing that increased charges do not necessarily lead to better services.
This policy will further burden Nigerians, who have already adapted to withdrawing cash from POS agents due to the persistent cash shortages at bank ATMs. I believe the primary reason ATMs are often empty is that banks profit more from supplying cash to POS operators than from loading their machines.
However, from the CBN’s perspective, the policy is meant to incentivize banks to keep their ATMs stocked, ensuring customers can withdraw cash directly from their banks without incurring extra charges. By discouraging banks from prioritizing POS agents over their own ATMs, the policy could push some POS operators out of business.
Additionally, the CBN aims to promote cashless transactions by encouraging people to transfer money rather than rely on cash.
However, the policy will negatively impact people in rural areas, where bank ATMs are scarce and cash transactions dominate. Many rural dwellers rely heavily on POS operators, and these new charges will not work in their favor. With Nigeria’s unstable power supply and unreliable internet connectivity, it remains unclear how people in these areas will cope.
My recommendation is that the apex bank should first address the persistent cash scarcity at ATMs before introducing any new withdrawal charges. Banks should return to the days when customers could easily access their savings without relying on POS agents. I also support calls for the CBN to conduct a thorough review of the policy and listen to the concerns of the people.
Tahir Ahmad is a corps member serving in Abuja
Email: [email protected]