Reps to CBN: suspend ATM fee hike, stop squeezing Nigerians

Joy Agwunobi

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

The lawmakers argued that the CBN’s decision to raise ATM withdrawal fees and eliminate free transactions for customers of different banks has placed an additional financial burden on Nigerians.

They noted that the banking sector continues to record substantial profits, making it unjustifiable to impose extra charges on customers without any significant improvements in service delivery or infrastructure.

The House also expressed concerns that these additional charges could undermine financial inclusion efforts by discouraging low-income earners from accessing banking services, which contradicts the CBN’s own financial inclusion agenda.

This resolution was adopted following a motion of urgent public importance moved by Marcus Onobun, who represents Esan Central/Esan West/Igueben Federal Constituency of Edo State, during a plenary session.

While presenting the motion, Onobun highlighted that the CBN, in a recent circular, had revised the ATM transaction fees outlined in Section 10.7 of its Guide to Charges for Banks, Other Financial, and Non-Bank Financial Institutions. He recalled that the last review in 2019 reduced ATM withdrawal fees from N65 to N35 per transaction.

However, he pointed out that under the new policy, customers withdrawing N20,000 from ATMs within bank premises would now be charged N100. He further explained that transactions conducted at ATMs located outside bank premises such as in malls, markets, and public spaces would attract a charge of N100 plus an additional N500 surcharge.

Onobun emphasised that these increased charges would place further strain on Nigerians who are already dealing with economic difficulties, including high inflation, rising fuel prices, increased electricity tariffs, and multiple banking fees that erode disposable income and negatively impact their financial well-being.

In its resolution, the House 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 lawmakers stressed that the government has a responsibility to protect citizens from exploitative financial practices that could lead to greater economic hardship.