The CBN has been directed to suspend its new ATM transaction charges pending proper engagement with relevant House Committees
The House of Representatives has directed the Central Bank of Nigeria (CBN) to suspend the implementation of its policy on the new Automated Teller Machine (ATM) transaction charges and the stoppage of free ATM withdrawals for customers using other banks’ ATMs.
It said the CBN is to suspend the charges pending proper engagement with the relevant committees in the House.
This resolution followed a motion of urgent public importance, sponsored by Rep. Marcus Onobun (PDP Edo), who highlighted the financial burden the policy places on Nigerians already struggling with economic hardship.
He said “The Central Bank of Nigeria (CBN) in its new circular, has reviewed the ATM transaction fees stipulated under section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions”, prescribing an increase in ATM withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ ATMs, thereby imposing additional financial burdens on Nigerians.”
The new introduces fees include:
- A N100 charge per N20,000 withdrawal for customers using other banks’ ATMs within a bank’s premises.
- A N100 charge plus an additional N500 surcharge for customers using ATMs outside a bank’s premises (e.g., malls, marketplaces, and public places).
Onubun alarmed that the said section 10.7 of this CBN guide was last reviewed in 2019, reducing ATM transaction fees from N65 to N35 per transaction.
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He expressed deep concern over the negative impact of the new charges, citing the ongoing economic struggles of Nigerians, including:
- High inflation rates
- Increased fuel prices
- Electricity tariff hikes
- Existing banking charges that already reduce citizens’ disposable income
He argued that these new charges contradict the CBN’s financial inclusion agenda by discouraging low-income earners from using banking services, adding that banks continue to record huge profits despite failing to improve service delivery and infrastructure, making the additional charges unjustifiable.
Onobun emphasized that the government has a duty to protect citizens from exploitative financial practices and prevent policies that may worsen the economic situation of Nigerians.
Adopting the resolution, the matter was referred to the House Committee on Finance and Banking Services.
