CBN Retains N100 ATM Fee for Withdrawals Below N20,000

The Central Bank of Nigeria (CBN) has maintained the N100 fee on ATM withdrawals below N20,000, a decision that has sparked mixed reactions among bank customers. The policy, aimed at regulating cash transactions and encouraging electronic payments, has been in place despite calls for its review.

Critics argue that the fee places an unnecessary financial burden on low-income earners who rely on smaller cash withdrawals for daily expenses. Many customers believe that rather than promoting financial inclusion, the charge discourages the use of ATMs, pushing more people towards cash transactions.

However, banking experts suggest that the policy aligns with CBN’s cashless economy initiative, which seeks to reduce cash dependency and boost digital payment adoption. They argue that higher transaction fees on cash withdrawals encourage the use of mobile banking, point-of-sale (POS) terminals, and online transfers.

Despite the concerns, the CBN has not indicated any plans to review the fee structure. As digital payment systems continue to expand, financial analysts advise customers to explore alternative transaction methods to minimize costs.