Reps Move to Block CBN’s Hike in ATM Fees Amid Economic Hardship

The House of Representatives has urged the Central Bank of Nigeria (CBN) to suspend the implementation of the new Automated Teller Machine (ATM) transaction charges. This decision was made due to the current economic situation in the country.

The call was made after the adoption of a motion of urgent public importance sponsored by Marcus Onobun, representing Esan Central/Esan West/Igueben Federal Constituency, Edo State.

Onobun noted that the CBN’s recent circular increased ATM withdrawal charges and discontinued free ATM withdrawals for customers using other banks’ ATMs. This move would impose additional financial burdens on Nigerians.

Under the new policy, customers withdrawing from their bank’s ATMs will still enjoy free withdrawals. However, a fee of N100 will be applied to N20,000 withdrawals for customers from other banks transacting from ATMs within the bank premises. An additional surcharge of N500 will be applied for transactions outside the bank premises.

The House argued that the new charges would limit financial inclusion, discourage low-income earners from accessing banking services, and contradict the CBN’s financial inclusion agenda. They also pointed out that the banking sector has continued to record significant profits without corresponding improvements in service delivery or infrastructure.

The Speaker, Tajudeen Abbas, put the motion to a voice vote, and it was overwhelmingly supported by the lawmakers. The House then urged the CBN to suspend the implementation of the policy pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.