Reps Orders CBN to Suspend New Policy on ATM Withdrawal Charges

The House of Representatives has asked the Central Bank of Nigeria (CBN) to immediately suspend its new policy prescribing an increase in ATM withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ Automated Teller Machines.

The Lower Chamber argues that the policy is imposing additional financial burdens on Nigerians, asking the CBN to await pro per engagements with its relevant Committees on Banking, Finance, and Financial Institutions for action and decision to be taken.

This is sequel to a motion of urgent importance sponsored by Marcus Onobun during Plenary on Tuesday.

The CBN, in its new circular, 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” up to N100 per N20,000 withdrawals applied to customers from other Banks transacting from ATMs within the Bank premises.

Leading debate on the motion, Onobun noted that the said section 10.7 of the Guide was last reviewed in 2019, reducing ATM transaction fees from N65 to N35 per transaction.

The lawmaker decried that “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.”

He expressed concerns that the imposition of additional ATM withdrawal charges would 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 House subsequently adopted the motion after majority lawmakers voted in favour of it.