Analysts are sounding the alarm over the increasing array of bank charges in Nigeria, warning that these fees could undermine the country’s financial inclusion gains. The concerns come as the Central Bank of Nigeria (CBN) recently announced revised ATM withdrawal charges, set to take effect on March 1.
Under the new policy, withdrawals from a customer’s own bank ATM will remain free, but those using another bank’s ATM will pay 100 per ₦20,000 withdrawal at bank premises. For off-site ATMs, an additional surcharge of up to ₦500 may apply.
But that’s not all – fintech companies like PalmPay, OPay, and Moniepoint have also begun deducting the Electronic Money Transfer Levy (EMTL) from customers’ transactions, as part of the government’s revenue drive. This has ended the benefit of free transactions that many fintech users had previously enjoyed.
Financial experts are warning that these mounting costs could discourage digital payments and force more Nigerians to rely on cash. David Adonri, Managing Director of Highcap Securities, noted that traders and small business owners might become hesitant to deposit their earnings in banks, knowing that withdrawing the funds later would attract additional fees.
Adewale Adeoye, a financial analyst, also criticized the rising costs, arguing that they could push more Nigerians away from formal banking. “These charges will enrich banks but impoverish customers,” he said.
The concerns are not limited to individual customers, as Point-of-Sale (PoS) operators are also preparing to raise their fees in response to the new ATM withdrawal charges. David Abiodun, Chairman of the Lagos Chapter of the Association of Mobile Money & Bank Agents of Nigeria (AMBANN), explained that PoS agents have been left to cover their own costs, including SIM cards and data.
As the situation unfolds, analysts are urging the government and financial institutions to reconsider these charges and prioritize financial inclusion. With Nigeria’s cashless policy and financial inclusion goals at stake, it remains to be seen how this situation will play out.
