E-Financial
CBN, CPC Look Elsewhere as Banks Milk Nigerians through ATMs
Stephen Ubimago, law editor at the Independent newspapers has asked the Central Bank of Nigerian (CBN) and the Consumer Protection Council of Nigeria (CPC) to act and stop needless extortion of ATM users in Nigeria.
Ubimago, said that that banks have continued to programme their ATMs in such a way as to extort users of the machines, while the CBN has simply been aloof.
Because the closest deposit money bank to where Babatunde Ajiri, a furniture-maker, has his workshop and showroom is the Sterling Bank branch along the Sango-Ogbayo Road, in Ogun State, he had often made withdrawals from his First Bank account using the Automated Teller Machines (ATM) at the said Sterling Bank branch.
To be sure, he is usually charged N65 on his third withdrawal transaction from the Bank’s ATM using his First Bank debit card.
Ordinarily, a user is charged for what the Central Bank of Nigeria (CBN) calls an “extended use of other banks’ ATMs,” unlike when he uses the ATM of his own bank.
According to reports, the said N65 is a fee meant for, among other things, the maintenance of the machines.
But the disturbing part of the story is that from the said Sterling Bank ATM, a user cannot withdraw more than N10, 000 in one transaction.
Thus for a withdrawal of N30, 000, a user must make three transactions. This means that for those three transactions on the machine, he will be charged the statutory N65; and for a N100, 000-withdrawal, an excessive N195 is charged. This is a rip-off, to state the least.
As such, Ajiri has practically stopped using the said Sterling Bank’s ATM, save on occasions when he is withdrawing small sums.
He now prefers journeying all the way to Sango just to access any of the ATMs of the First Bank branch located there, for at least he wouldn’t be charged so extortionately except the sum of N50 once in a month, which is fair enough.
According to Ubimago, to state that the said Sterling Bank branch is making a kill from programming its ATMs to only dispense such atomistic sum is to state the obvious.
And the fact that the bank is the only major financial institution operating in the Ijoko- Ota area means it is operating in a niche environment or indeed like a monopoly.
However, from most banks’ ATM a user could withdraw at a go N20,000 – meaning that before the N65 statutory fee could be charged on his account (that is, if he is not a customer of the bank), he must have withdrawn at least N60,000. This is also fair.
Therefore, for ATM users like Ajiri, the problem is not the N65 charge upon every third withdrawal transaction on another bank’s ATM; but the fact that it appears the CBN does not seem to regulate the banks in terms of how they programme their ATMs to dispense cash.
And Ajiri’s story is not isolated.
Miss Agatha Young, a First Bank customer and Abuja resident, narrating a similar experience said, “I live in Kubwa, and almost all banks’ ATMs in my area dispense maximum of N10, 000.
“Recently, I needed to withdraw N200,000 and my bank’s ATM was crowded, so I went to use another bank’s ATM only to discover that the machine was dispensing only N10,000 per transaction.
“I was only able to withdraw N150, 000 because other customers were waiting on the queue and I was tired of going through the same process.
“I also discovered I was charged so much for those transactions as I had exceeded three withdrawal limit using the other bank’s ATM, which is outrageous.’’
Another user, Sunday Mgbede, a Guarantee Trust Bank customer, residing in Nyanya, another Abuja suburb, said most of the ATMs in his area dispensed maximum of N10, 000 per transaction.
“If you want to make withdrawals at weekends around the Nyanya/Mararaba axis, you will discover that only few ATMs are dispensing over N10, 000 per transaction,” he said.
“The concerned authorities should please look into this matter because people are suffering, there is no money in the country, yet banks want to make profit off customers.”
Another customer of First Bank, Erica Jonah, said she used her ATM card to withdraw N100,000 from another bank and discovered the machine was programmed to dispense N10,000 per transaction and was charged N65 per transaction.
Jonah said that was not her first experience, describing the practice by banks involved as fraudulent.
It is in light of the foregoing that the Senate on Wednesday, October 17, last year, asked its committees on Banking, Insurance & other Financial Institutions and Finance to invite Mr Godwin Emefiele, the CBN Governor, to explain why its approved official charges are skewed in favour of banks as against ordinary bank customers.
The committees are also to investigate the propriety of ATM Card maintenance charges in comparison with international best practices and report back to the Senate.
These resolutions were sequel to a motion sponsored by Gbenga Ashafa (APC, Lagos East) on “Illicit and Excessive Charges by Nigerian Banks on customers account with particular focus on Automated Teller Machine (ATM) Maintenance and Withdrawal Charges.”
Ashafa noted there have been several complaints from Nigerians generally and on social media concerning illicit and excessive charges by commercial banks on customers’ account with particular focus on ATM maintenance charges and ATM withdrawal charges.
It would be recalled that the CBN in 2017 increased the maintenance fees charged by banks on debit and credit card maintenance from N100 a year to N50 per month (N600 a year) as contained in its “Guide to Charges by Banks and other Financial Institutions.”
Ashafa also expressed worry that most banks have deliberately manipulated their ATM not to dispense more that N10,000 per withdrawal in some cases and in most cases not more than N20,000.
“This is a deliberate ploy to manipulate the ATM machines which are ordinarily manufactured to dispense as much as N40,000 per transaction, in order to attract more bank charges from customers who are forced to carry out more transactions due to the manipulated machines,” Ashafa said on the occasion.
“It appears the CBN is becoming insensitive to the plight of Nigerians who are already complaining of excessive charges by commercial banks. If the CBN is trying to encourage a cashless Nigeria, why should they be making it more difficult and expensive for Nigerians to do transactions.”
In his contribution, Ike Ekweremadu, the Deputy Senate President, urged the CBN to live up to its responsibility of protecting the interests of Nigerians and not just the banks.
He also chided the Consumer Protection Council (CPC) for not “living to expectation,” calling on the institutions to wake up to its responsibility of protecting the interest of customers.
The Senate, thereafter, urged banks to allow N40, 000 maximum per withdrawal through an ATM and not N10, 000.
Despite these and other resolutions passed by the Senate, the banks have been defiant.
The CBN and CPC must therefore urgently act to rein in this needless exploitation of Nigerians in the name of ATM maintenance charges; otherwise the leadership of these institutions should resign.
Bank Verification Number (BVN) database rose to a new high in July 2025, with total enrollments climbing to 66.23 million, a 4.3 per cent increase within the first seven months of the year, as Nigerians residing outside the country enrolled through the Non-Resident BVN (NRBVN) initiative.
The Central Bank of Nigeria (CBN) had, earlier this year, introduced the NRBVN, alongside the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), to attract diaspora investments into the country.
Subsequently, commercial banks with international licences took up the challenge, launching roadshows to help Nigerians abroad open accounts and enrol in the biometric identity system.
This effort drove up the number of enrollments from the 63.48 million recorded as of December 2024.
According to the latest figures from the Nigeria Inter-Bank Settlement System (NIBSS), 2025 is shaping up to be one of the most active years for BVN registration since 2021.
Over the past four years, BVN growth has maintained a steady upward trend: from 51.9 million in 2021, enrollments rose by 7.9 per cent to 56 million in 2022, followed by a 7.4 per cent increase to 60.1 million in 2023.
Growth moderated slightly in 2024, with a 5.6 per cent rise, but the 4.3 per cent increase already recorded by mid-2025 suggests this year could surpass last year’s total by December.
The NRBVN enables Nigerians living abroad to enroll for BVNs remotely, eliminating the need to visit bank branches in Nigeria.
At a cost of $50, the initiative has significantly broadened the system’s reach and strengthened diaspora engagement with the country’s formal financial services.
The spike in non-resident enrollments has also been supported by stricter Know Your Customer (KYC) requirements across the banking sector and deeper collaboration with fintechs that streamline the onboarding process.
Together, these efforts have reinforced the BVN’s role as a cornerstone of digital identity and financial inclusion in Nigeria.
Alongside the rise in BVN registrations, the banking sector is witnessing increased account activity.
As of March 2025, the number of active bank accounts reached an all-time high of 320.053 million.
Dormant accounts stood at 33.4 million, while 29.4 million accounts had been closed.
This compares to slightly lower figures in February, which recorded 316.8 million active accounts, 19.9 million dormant accounts, and 33.3 million closures.
The rebound in March points to a growing number of Nigerians re-engaging with the formal banking system, aligning with broader efforts by financial institutions and regulators to promote access, trust, and compliance within the financial sector.
Zenith Bank Plc on Tuesday rewarded Nigeria’s senior women’s basketball team, D’Tigress, with ₦200 million for winning the 2025 FIBA Women’s AfroBasket Championship.
L-R: Executive Director, Mr. Henry Oroh; Executive Director; Mr. Louis Odom; D’Tigress Captain, Amy Okonkwo; President, NBBF, Engr. Musa Kida; Group Managing Director/ Chief Executive, Zenith Bank Plc., Dame (Dr.) Adaora Umeoji, OON; Head Coach, D’Tigress, Rena Wakama; Executive Director, Mrs. Adobi Nwapa and Executive Director, Mr. Akin Ogunranti during the reception hosted by Zenith Bank to celebrate D’Tigress’ 2025 Afrobasket Women’s Championship triumph in Abuja, yesterday.
The reception, held at the bank’s head office in Maitama, Abuja, was organised to honour the team for clinching a historic fifth consecutive AfroBasket title.
Each player is expected to receive ₦10 million, which will be paid into their Zenith Bank accounts, while the technical crew and other officials will share the balance.
D’Tigress defeated Mali 78–64 in the final played in Abidjan on Sunday. The team returned to Nigeria on Monday and was received by President Bola Tinubu, who conferred National Honours of Officer of the Order of the Niger (OON) on the players and gave them cash rewards.
Zenith Bank has sponsored the Women National Basketball League for 18 years, with several players and officials of the current team having passed through the league.
Among them are Murjanatu Musa, MVP of the Air Warriors team that won the 2022 league title, and Ifunnaya Okoro. The team’s head coach, Rena Wakama, also played in the league with First Bank Women Basketball Club.
Present at the reception were Zenith Bank Executive Directors Adobi Nwapa, Akin Ogunranti, Henry Oroh and Louis Odom.
Also in attendance were the Chairman of the National Sports Commission, Mallam Shehu Dikko, President of the Nigeria Basketball Federation (NBBF), Musa Kida, and other board members.
Speaking at the event, the Group Managing Director/Chief Executive Officer of Zenith Bank, Dame (Dr.) Adaora Umeoji, OON, commended the team for their performance and reaffirmed the bank’s commitment to supporting women’s basketball in Nigeria.
“Your victory at the 2025 FIBA Women’s AfroBasket is not just a win for Nigeria, it is a win for African sports,” she said.
Responding on behalf of the team, captain and tournament MVP, Amy Okonkwo, thanked Zenith Bank for its continued support for women’s basketball in the country.Zenith Bank Plc
Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC) Nigeria, has said that West Africa is fast emerging as a global epicentre for virtual asset adoption, propelled by a young, tech-savvy population and macroeconomic instability.
Speaking at the West Africa Compliance Summit organised by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) in Praia, Cape Verde, Dr. Agama warned that while the region’s embrace of digital currencies is accelerating, the absence of coordinated regulation leaves it vulnerable to financial crimes and illicit capital flows.
“With over 60 percent of West Africa’s population under the age of 25 and mobile-first fintech platforms thriving, the region has become a global hotspot for virtual asset adoption,” he said. “But we must act decisively. Regulation is not optional, it is an imperative.”
The summit, themed “Adapting and Thriving in a Complex and Evolving Compliance Landscape,” brought together financial regulators, compliance professionals, and security experts to explore the challenges posed by the rapid rise of virtual assets and decentralised finance (DeFi).
Dr. Agama disclosed that crypto transactions in Nigeria alone surpassed $56 billion in 2024, with citizens increasingly turning to stablecoins such as USDT and USDC to hedge against volatile local currencies. He highlighted the growing trend of “crypto-dollarisation,” noting that young professionals now demand salaries in stablecoins, while businesses are adopting platforms like Binance Pay for cross-border transactions.
“The naira’s depreciation, Ghana’s cedi weakness, and persistent forex shortages have fueled this shift,” he explained. “Traditional remittance channels charge up to 10 percent in fees, while cryptocurrencies offer faster and cheaper alternatives. Over $20 billion in remittances flowed into West Africa last year through crypto channels.”
However, he also cautioned that the same innovations driving financial efficiency are increasingly being exploited by fraudsters and criminal actors. He cited GIABA’s report of $2.1 billion in suspicious crypto-related transactions across West Africa in 2024 alone, including the use of privacy coins by terror financiers to evade detection.
“Unregulated exchanges, artificial market crashes, DeFi ‘rug pulls,’ and Ponzi schemes have wiped out billions in investor funds,” he said. “The recent collapse of the CBEX Ponzi platform is just one of many such incidents. Strong regulation and regional coordination are the only path forward.”
Dr. Agama pointed to Nigeria’s recent legislative progress, especially the enactment of the Investment and Securities Act 2025, which formally classifies virtual assets—including cryptocurrencies, stablecoins, utility tokens, and NFTs—as securities under Section 355(4) and Part I of the Second Schedule.
“Under the new law, all exchanges, wallets, and DeFi platforms must be licensed by the SEC,” he stated. “We’ve also established a Fintech and Innovation Department to facilitate ongoing dialogue with industry stakeholders and adapt our regulations to emerging realities.”
He called on West African governments to harmonise regulatory frameworks and strengthen intelligence-sharing, proposing a Unified Virtual Asset Service Provider (VASP) Licensing System under the ECOWAS framework.
“A crypto trader banned in Nigeria should not find safe haven in Ghana,” he asserted. “Financial crime knows no borders. Our collective future depends on our ability to secure this emerging financial frontier.”
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