Nigeria’s House of Representatives has directed the Central Bank of Nigeria (CBN) to halt the recent increase in Automated Teller Machine (ATM) transaction charges.
The call comes as Nigerians face mounting economic challenges, with the lawmakers arguing that the new fees would exacerbate financial difficulties for citizens already stretched thin.
The resolution was passed during Tuesday’s plenary session following a motion of urgent public importance tabled by Mr. Marcus Onobun, the representative for Esan Central/Esan West/Igueben Federal Constituency in Edo State.
CBN’s New ATM Charges Policy
The CBN’s new policy, outlined in a recent circular, introduces significant changes to ATM withdrawal fees. Under the revised framework, customers using their own bank’s ATMs will continue to enjoy free withdrawals.
However, those withdrawing cash from another bank’s ATM will face a fee of N100 for every N20,000 withdrawn if the transaction occurs within the bank’s premises. For withdrawals at off-site ATMs—such as those in malls, markets, or other public spaces, an additional N500 surcharge will be levied on top of the N100 fee.
This marks a departure from the previous practice of free withdrawals at other banks’ ATMs, a change that has sparked widespread concern.
Onobun Highlights Economic Hardship
Speaking on the House floor, Onobun, a member of the Peoples Democratic Party (PDP), emphasized the timing of the policy as particularly ill-suited given Nigeria’s economic climate.
He pointed to the cumulative burden of high inflation, soaring fuel prices, electricity tariff increases, and a slew of banking charges that have eroded disposable income for millions. “Nigerians are already grappling with multiple economic hardships,” Onobun stated, warning that the additional ATM fees would deepen financial strain and undermine the welfare of ordinary citizens.
Threat to Financial Inclusion
Beyond the immediate cost to consumers, Onobun raised alarms about the policy’s broader implications. He argued that the new charges could deter low-income earners from engaging with formal banking services, contradicting the CBN’s stated goal of promoting financial inclusion. “We are worried that this will limit access to banking for the most vulnerable, pushing them further away from the financial system,” he said.
The lawmaker stressed that such a move runs counter to efforts to integrate more Nigerians into the formal economy, a cornerstone of the CBN’s agenda.
Critique of Banking Sector Practices
Onobun also took aim at the banking sector, accusing it of prioritizing profits over service quality. He noted that Nigerian banks have continued to report substantial earnings, yet customers see little improvement in infrastructure or service delivery. “Imposing further charges without corresponding benefits is unjustifiable,” he asserted, calling for greater accountability from financial institutions.
His remarks reflect a growing frustration among lawmakers and the public over perceived exploitation by banks amid economic difficulties.
Support from Other Lawmakers
The motion received strong backing from Onobun’s colleagues, culminating in a voice vote overseen by Speaker Tajudeen Abbas. The approval underscored the urgency of the issue and the House’s unified stance against the CBN’s policy.
Following the vote, the House formally urged the CBN to suspend the fee hike immediately, pending thorough consultations with the relevant legislative committees, including those on Banking, Finance, and Financial Institutions.
A Call for Dialogue
The lawmakers’ intervention signals a demand for greater collaboration between the CBN and elected representatives to address policies affecting Nigerians’ livelihoods.
By mandating engagement with its committees, the House aims to ensure that any future decisions on ATM charges reflect the realities faced by citizens.
For now, the suspension directive stands as a reprieve for Nigerians bracing for yet another financial hit, with the ball firmly in the CBN’s court to respond.
