Higher POS-ATM Withdrawal Fees: What This Means for Nigerians' Wallets

As the March 1 deadline draws nearer, consumers and financial analysts are closely monitoring how banks and PoS operators will react to the updated fees.

A circular signed by John Onojah, the Acting Director of the Financial Policy and Regulation Department, states that the revised charges will come into effect on March 1, 2025.

The amendments bring Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020) up to date.

The new policy allows customers to withdraw cash without incurring fees from their own bank’s ATM.

However, individuals making withdrawals from other banks using on-site ATMs at bank branches will now face a charge of ?100, along with an extra surcharge that can reach up to ?500 for every ?20,000 withdrawn.

When it comes to international ATM withdrawals with debit or credit cards, financial institutions will introduce a cost-recovery charge that matches the exact fee imposed by the international acquirer.

According to the CBN, these modifications are intended to promote the installation of ATMs and guarantee equitable fees among financial institutions.

Even with the CBN’s rationale, economic analysts have voiced worries that the new policy could result in unintended consequences.
 

In an interview with Daily Independent, Dr. Wale Imole, the organizer of the National Problems and Solutions Initiative, cautioned that PoS providers could take advantage of the situation to increase their service fees.

“The news of the CBN's approval for this review serves as a duty call for PoS operators to raise their fees. He stated, "Nigerians were already finding it difficult to cope with the elevated and erratic charges levied by these agents."

Imole called on the CBN to oversee PoS charges and stop operators from exploiting consumers by capitalizing on the revised ATM fees.

In the meantime, the development has evoked a variety of responses from traders and proprietors of small businesses.

Mrs Chikodi Ugochukwu, who is a trader, recognized the possible advantages but kept a cautious stance.

“I will welcome this review if it makes ATM transactions more efficient. “But I hope it also puts a stop to failed transactions and unnecessary deductions,” she said.

As the March 1 deadline draws nearer, consumers and financial analysts are closely monitoring how banks and PoS operators will react to the updated fees.