News Update
BANKS have commenced implementation of the new Automated Teller Machine (ATM) transaction fee charge on customers following the Central Bank of Nigeria (CBN’s) directive.
The News Agency of Nigeria (NAN) correspondent who monitored some banks’ ATM gallery in Abuja and environs on Sunday, reports that some customers were lamenting about the increase.
NAN reports that all the banks’ ATM visited had monies loaded in them.
Mr Luke Abudu, a customer seen at First Bank along Nyanya-Jikwoyi road, said the implementation would only affect the poor masses who were struggling to make a living.
Abudu said the move would discourage customers from lodging monies in the banks.
This is too much for a small business owner like me,” he said.
Another customer, Mrs Victoria Adejo, seen at Zenith Bank, Mararaba branch said that withdrawal from Point of Sale (PoS) agent was now cheaper than using an ATM.
“It is unfortunate that our government formulates policies without feeling the pulse of the people.
“I read that the CBN said the decision is in response to rising cost and to improve efficiency of ATM services but banks still bill us for service charge,” she said.
Mr Nurudeen Ehimotor, a customer at Guaranty Trust Bank (GTB), Asokoro, said he was at the bank to use the ATM due to the bank’s poor online network.
”I came to use ATM because I tried to transfer money from my bank using USSD since yesterday but it didn’t go through.
”I have an issue with my app, so I have been using USSD codes for my transfer. I think they (the banks) are trying to make people use ATM now for them to make more money,” he said.
Ehimotor appealed to banks to reduce incessant charges on customers’ accounts.
NAN reports that the CBN had on February 10, released a circular to all banks and other financial institutions to apply the fees with effect from March 1.
CBN in the circular entitled: ‘Review of ATM transaction fees,’ said the move was in response to rising cost and the need to improve efficiency of ATM services in the banking industry.
“On-Us (customers withdrawing at the ATM of the customer’s financial institution) in Nigeria, no charge.
“Not-on-Us (withdrawal from another institution’s ATM) in Nigeria; On-site-ATMs: A charge of N100 per N20,000 withdrawal.
“Off-site ATMs: A charge of N100 plus a surcharge of not more than N500 per N20,000 withdrawal.
”The income which is an income of the ATM acquirer/deployer, shall be disclosed at point of withdrawal to the consumer,” it said.
Banks had informed their customers through various electronic mails (e-mails) of the increase.
GTB told its customers in addition to the ATM transaction fee, that the free monthly withdrawals usually enjoyed by them would no longer be applied.
“Please note that the three free monthly withdrawals at other banks’ ATMs (for GTBank customers) and GTBank ATMs (for other bank customers) will no longer apply,” the bank said.
SERAP has urged President Bola Tinubu to “direct Mr Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN) to suspend the implementation of the increase in Automated Teller Machine (ATM) transaction fees, pending the hearing and determination of the lawsuit before the Federal High Court, Lagos challenging the legality of the increase.”
SERAP also urged him to “seek legal advice from the Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi, on whether the CBN has the legal responsibilities to uphold the rule of law its operations by suspending the ATM fee hike, pending the determination of lawsuit on the matter.”
SERAP had last month filed a lawsuit against the CBN “over the failure to reverse the “patently unlawful, unfair, and unjust increase in ATM transaction fees.”
The lawsuit followed the announcement by the CBN that ATM withdrawals made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn.
ATM withdrawals at shopping centres, airports or standalone cash points, will incur a N100 fee plus a surcharge of up to N500.
In the open letter dated March 1, 2025 and signed by SERAP deputy director, Kolawole Oluwadare, the organisation said: “Directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit.”
The letter also read in part: “It would also be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 (as amended), your oath of office and oft-repeated promises to uphold the rule of law.
MESSAGE us @ https://Wa.me/+2348072633727 for business relationship, Advert, PR, Publicity, Awareness, Interviews, Feature Stories, Press Release/Statement and so on…
“Implementing the ATM fee hike while the lawsuit on the matter is pending before the Federal High Court would make a mockery of the judicial process and the rule of law.
“The CBN has the duty to maintain the status quo as of February 26, 2025 when the court processes were duly served on it and during the pendency of the lawsuit filed by SERAP on the ATM fee hike before the Federal High Court, Lagos.”
YOU CAN READ MORE NEWS UPDATES AND INFO @ https://www.voiceairmedia.com