Banks in Nigeria have started enforcing new ATM transaction fees as mandated by the Central Bank of Nigeria, causing dissatisfaction among customers who feel the additional costs are burdensome, particularly for low-income individuals. Customers reported fees making ATM transactions more expensive than withdrawals from Point of Sale terminals. The CBN justifies the increase based on operational costs, but critics emphasize the impact on the financially vulnerable.
Following a directive from the Central Bank of Nigeria (CBN), banks have begun implementing new fees for Automated Teller Machine (ATM) transactions. Reports from Abuja indicated that customers expressed their dissatisfaction with these increases, perceiving them as burdensome for the low-income population. For instance, one customer mentioned being charged ₦100 to withdraw ₦20,000, deeming this amount excessive for someone running a small business.
Another customer remarked that it has become cheaper to withdraw cash from Point of Sale (PoS) terminals than from ATMs. She criticized the government’s policies, stating that they lack consideration for the people’s struggles, despite the CBN’s justification citing rising operational costs and the need for enhanced ATM service efficiency. Furthermore, customers criticized banks for their profitability while still imposing service charges on transactions.
One individual noted that the banks may be encouraging ATM usage to generate additional revenue, especially given the subpar online banking services they have provided. He urged financial institutions to reduce their frequent charges to lessen the financial burden on consumers.
The CBN’s announcement, made on February 10, outlined the new fee structure effective March 1. For withdrawals at their own bank’s ATMs (On-Us), customers will not incur a charge, while Non-Us transactions at on-site ATMs will incur a ₦100 fee per ₦20,000 withdrawn, and off-site ATMs will incur an additional surcharge.
In communication with customers, several banks, including Guaranty Trust Bank (GTB) and Access Bank, announced the termination of free withdrawals at third-party ATMs, alongside the newly enforced transaction fees. These changes have sparked wide discontent among banking clients, forcing them to reconsider their transaction behaviors in light of the escalating fees.
The introduction of new ATM transaction fees by banks under directives from the Central Bank of Nigeria has drawn significant backlash from customers. Many feel that the government is out of touch with the economic struggles of ordinary Nigerians and that these increases disproportionately affect the less affluent, leading to calls for reduced banking fees and a re-evaluation of government policies on financial services.
Original Source: gazettengr.com
