Nigerians to suffer higher PoS charges as CBN hikes ATM withdrawal fees

The Central Bank of Nigeria (CBN) has announced an upward review of automated teller machine (ATM) withdrawal charges, a decision that has raised concerns about potential hikes in Point of Sale (PoS) service fees.

According to a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the revised charges will take effect from March 1, 2025.

The changes update Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions (2020).

Under the new policy, customers will continue to withdraw cash from their own bank's ATM free of charge.

However, those using on-site ATMs at bank branches for withdrawals from other banks will now incur a fee of ₦100, plus an additional surcharge of up to ₦500 per ₦20,000 withdrawal.

For international ATM withdrawals using debit or credit cards, financial institutions will implement a cost-recovery charge equivalent to the exact amount charged by the international acquirer.

The CBN stated that these changes aim to encourage ATM deployment and ensure fair charges across financial institutions.

Despite the CBN's justification, economic analysts have expressed concerns that the new policy might lead to unintended consequences.

Stakeholder's reaction

Speaking to Daily Independent, Dr Wale Imole, convener of the National Problems and Solutions Initiative, warned that PoS operators might seize the opportunity to hike their service charges.

"Hearing that the CBN has approved this review is a call to duty for PoS operators to increase their charges. Nigerians were already struggling with the high, inconsistent fees imposed by these agents," he said.

Imole urged the CBN to regulate PoS charges and prevent operators from taking advantage of the revised ATM fees to exploit consumers.

Meanwhile, traders and small business owners have expressed mixed reactions to the development.

Mrs Chikodi Ugochukwu, a trader, acknowledged the potential benefits but remained cautious.

"If this review brings more efficiency to ATM transactions, I will welcome it. But I hope it also puts an end to failed transactions and unnecessary deductions," she said.

With the March 1 deadline approaching, consumers and financial analysts alike are watching closely to see how PoS operators and banks will respond to the revised charges.