By Gloria Ikibah
The House of Representatives has directed the Central Bank of Nigeria (CBN) to immediate suspend the new policy increasing ATM transaction charges and scrapping free ATM withdrawals for customers using other banks’ ATMs.
The resolution was sequel to the adoption of a motion of urgent public importance by Rep. Marcus Onobun for the “SUSPENSION OF THE CENTRAL BANK OF NIGERIA INCREASE IN ATM TRANSACTION CHARGES AND STOPPAGE OF FREE ATM WITHDRAWALS FOR CUSTOMERS FROM OTHER BANKS IN NIGERIA”, on Tuesday at plenary.
Naijablitznews.com recalled that the CBN’s new policy, which was effective March 1, 2025, imposes a fee of N100 per N20,000 withdrawals for customers using other banks’ ATMs within bank premises, and an additional surcharge of N500 for transactions outside bank premises.
According to Rep. Onobun, the new CBN policy will be burdensome on Nigerians who are already grappling with economic hardships.
He expressed worries that the new charges will limit financial inclusion, particularly for low-income earners, and contradict the CBN’s financial inclusion agenda.
The lawmaker further noted that the banking sector has continued to record significant profits without corresponding improvements in service delivery or infrastructure, making the new charges unjustifiable.
The motionreadsinpart: “Aware that the said section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 Naira to N35 per transaction.
“Note that according to this new policy, customers withdrawing from their Bank’s ATMs will continue to enjoy free withdrawals. However, a fee of N100 per N20,000 withdrawals will be applied to customers from other Banks transacting from ATMs within the Bank premises.
” Similarly, Customers from other Banks transacting from ATM outside the premises of the Bank (Malls, Market places, and other public places) will be charged N100 and an additional surcharge of N500.
“The citizens of Nigeria are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hike, and numerous banking and service charges that significantly reduce disposable income and negatively impact the economic welfare of citizens.
“Imposition of additional ATM withdrawal charges will further limit the financial inclusion of Nigerians by discouraging low-income earners from accessing banking services, thereby contradicting the CBN’s financial inclusion agenda.
“The fact that the banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.
“The role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress”.
The House unanimously adopted the motion and referred the motion to the committees on Banking, Finance, and Financial Institutions.for further legislative action.
