The House of Representatives has called on the Central Bank of Nigeria (CBN) to immediately suspend its recent increase in Automated Teller Machine (ATM) transaction charges and the discontinuation of free withdrawals for customers using other banks’ ATMs.
This decision was made during a plenary session following a motion presented by Hon. Marcus Onobun, the representative for Essan Central/Essan West/Igueben federal constituency in Edo State.
In his motion, Onobun highlighted that the CBN’s new circular revises ATM transaction fees as outlined in section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions.” The changes include an increase in withdrawal charges and the elimination of free ATM withdrawals for customers using machines from banks other than their own, which he argued places an additional financial burden on Nigerians.
Onobun pointed out that the last review of section 10.7 occurred in 2019, which had reduced ATM transaction fees from N65 to N35. Under the new policy, customers withdrawing from their own bank’s ATMs will continue to enjoy free withdrawals, while those using other banks’ ATMs will incur a fee of N100 for every N20,000 withdrawn, along with an additional N500 surcharge for transactions outside the bank’s premises.
The lawmaker expressed concern that many Nigerians are already facing significant economic challenges, including high inflation, rising fuel prices, and increased electricity tariffs. He emphasized that the new ATM charges would further diminish disposable income and negatively impact the economic welfare of citizens, particularly low-income earners.
Onobun also raised alarms about the potential consequences of these charges on financial inclusion, arguing that they could discourage low-income individuals from accessing banking services. He noted that this contradicts the CBN’s stated agenda of promoting financial inclusion across the country.
Furthermore, he criticized the banking sector’s profitability, asserting that imposing additional charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable. He reminded the House that it is the government’s responsibility to protect citizens from exploitative financial practices that could exacerbate economic distress.
Following the adoption of the motion, the House reiterated its call for the CBN to suspend the implementation of the new ATM fee policy until proper consultations with relevant committees can take place. The lawmakers emphasized the need for a balanced approach that considers the economic realities faced by Nigerians.