Cardoso: Why ATM transaction fees were increased

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the recent increase in the automated teller machine (ATM) transaction fees would improve access to cash and prevent exploitation.

Cardoso spoke at a news conference on Thursday after the regulator’s 299th monetary policy committee (MPC) meeting in Abuja.

The CBN had announced that new ATM transaction fees would take effect from March 1, citing rising costs and the need to enhance service efficiency as the reason for the increase.

Speaking on the move, Cardoso said while it may initially appear as another economic challenge due to increasing tariffs, the decision aims to improve access to cash.

“This actually came as a result of efforts deployed when there was a shortage of currency, especially towards the Christmas period, and when people were experiencing undue hardship,” the economist said.

“We were meeting regularly, and I chaired a commitee that convened daily to devise short, medium, and long-term solutions.

“The banks must be incentivised to ensure regular ATM availability so that people can access their money conveniently.

“While the situation has improved significantly, more needs to be done to make cash withdrawals seamless.

“If we are planning for the future, certain costs must be absorbed, and this is one of them.

“My view is that it will not dissuade people from accessing their money easily. Instead, it should encourage banks to ensure better service, especially where fees are charged for withdrawals.

“The good news is that withdrawing from your own bank remains free.

“If you frequently use another bank’s ATM, you can apply for a card with that bank to avoid charges.

“This measure will encourage the expansion of ATM services and make cash access easier.

“It will also discourage those who have exploited gaps in the system to charge exorbitant fees for cash withdrawals. Over time, this practice will be eliminated.”

‘NAIRA MORE COMPETITIVE, ATTRACTING INTERNATIONAL INVESTORS’

Cardoso said the naira has become more competitive, attracting increased interest from international investors.

“Our currency is much more competitive, and as a result, we have seen greater interest from international investors looking to invest in Nigeria’s future,” he said.

The CBN governor as stability is maintained, the country would begin to witness more investment inflows, which are essential to spur the badly needed growth.

He reiterated that the CBN is focused on achieving stability in the foreign exchange (FX) and financial markets.