New ATM Fees Exacerbate Hardship for Nigerians, Customers Assert

Nigerian banks are now charging new ATM fees following a directive from the Central Bank of Nigeria, eliciting strong reactions from customers. Individuals argue these fees worsen economic hardship, especially for the poor. Critics have noted cheaper alternatives like Point of Sale transactions and called for a reassessment of frequent bank charges amid the financial pressures adding to the challenges they already face.

Banks in Nigeria have begun enacting new Automated Teller Machine (ATM) transaction fees as mandated by the Central Bank of Nigeria (CBN). Customers have expressed their dissatisfaction, pointing out that the increased fees impose a heavier burden, particularly on low-income individuals. One customer lamented the N100 charge for withdrawing N20,000, emphasizing that for small business owners, such fees are substantial.

Victoria Adejo, another bank customer, observed that using Point of Sale (PoS) agents has become more economical compared to ATM withdrawals. She criticized the government’s policies for not reflecting the realities faced by ordinary citizens, arguing that while the CBN claims these fees address rising costs and enhance ATM service efficiency, they ultimately exacerbate financial pressures on the public.

Additionally, Nurudeen Ehimotor highlighted issues with banks’ online services, which necessitated his ATM visit. He appealed to financial institutions to reconsider the frequency and magnitude of the charges imposed on customers, further reflecting a widespread desire for fairer banking practices.

The CBN’s circular on February 10 detailed the new fee structure that took effect on March 1. The circular categorized charges based on whether withdrawals occurred at an institution’s ATM or a foreign one, with specific fees outlined for each transaction type. Notably, banks have also updated customers via electronic communications regarding significant changes to withdrawal allowances, including the termination of three free monthly withdrawals previously enjoyed by customers.

In conclusion, the implementation of new ATM fees by Nigerian banks, as instituted by the CBN, has led to significant customer grievances. Many individuals feel that these charges disproportionately impact lower-income populations. Despite the stated intent to enhance efficiency, feedback from bank customers indicates a growing discontent with increasing fees in an already challenging economic landscape.

Original Source: gazettengr.com