House of Reps calls for suspension of new ATM charges

The House of Representatives has urged the Central Bank of Nigeria (CBN) to halt the implementation of the recent increase in Automated Teller Machine (ATM) transaction charges, citing the current economic challenges facing Nigerians.

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

While presenting the motion, Onobun highlighted a recent CBN directive that introduced higher ATM withdrawal fees and removed the previously free ATM withdrawals for customers using other banks’ machines. He noted that these changes would impose further financial strain on Nigerians.

Under the new policy, customers withdrawing from their bank’s ATMs will continue to enjoy free transactions. However, those using ATMs of other banks will face new charges. Withdrawals of N20,000 from ATMs located within bank premises will attract a N100 fee, while transactions at offsite ATMs in locations such as malls and marketplaces will incur a N100 fee plus an additional N500 surcharge.

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Expressing concern over the development, Onobun stated, “Nigerians are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hikes, and numerous banking and service charges that significantly reduce disposable income and negatively impact their welfare.”

He further argued that the additional ATM withdrawal charges could discourage low-income earners from using banking services, contradicting the CBN’s financial inclusion agenda. He added, “The banking sector has continued to record significant profits. Imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.”

Following a voice vote, which showed overwhelming support from lawmakers, the House resolved to call on the CBN to immediately suspend the policy. It also urged the apex bank to engage with the relevant committees on Banking, Finance, and Financial Institutions before proceeding with the implementation.

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