BREAKING: Reps Opposes CBN’s ATM Charges Hike, Demands Immediate Suspension

BREAKING: Reps Opposes CBN’s ATM Charges Hike, Demands Immediate Suspension

The House of Representatives has called for the immediate suspension of the recent increase in ATM transaction charges and the removal of free ATM withdrawals for customers using other banks, as imposed by the Central Bank of Nigeria (CBN).

According to the House, the CBN’s directive to raise ATM withdrawal fees and discontinue free withdrawals for interbank transactions has placed an additional financial strain on Nigerians.

The lawmakers noted that despite the banking sector’s continued profitability, imposing higher charges on consumers without a corresponding improvement in service quality or infrastructure is unjustifiable.

They further argued that the additional withdrawal charges could hinder financial inclusion by discouraging low-income earners from using banking services, thereby contradicting the CBN’s own financial inclusion objectives.

The House’s resolution followed the adoption of a motion moved during Tuesday’s plenary by Marcus Onobun.

Presenting the motion, Onobun highlighted that the CBN’s latest circular had revised ATM transaction fees as outlined in Section 10.7 of its Guide to Charges by banks and other financial institutions. He pointed out that the last review of this section in 2019 had reduced ATM transaction fees from N65 to N35 per transaction.

Under the new policy, withdrawals from a customer’s own bank ATM remain free. However, customers using another bank’s ATM within the bank’s premises would be charged N100 for every N20,000 withdrawal. Additionally, those using ATMs outside the bank premises, such as in malls and marketplaces, would face a N100 charge plus an extra N500 surcharge.

The House in its resolutions urged the CBN “to immediately suspend the implementation of this policy, pending proper engagement with the relevant committees on banking, finance, and financial institutions”.

The House expressed concern that these new charges come at a time when Nigerians are already burdened with economic hardships, including high inflation, rising fuel prices, increased electricity tariffs, and multiple banking fees, all of which erode disposable income and negatively impact citizens’ economic well-being.

The lawmakers stressed that the government has a responsibility to protect citizens from exploitative financial practices that could further deepen economic difficulties.