By Mercy Aikoye
The House of Representatives has urged the Central Bank of Nigeria (CBN) to immediately suspend its new policy that increases ATM withdrawal charges.
This decision was made after a motion sponsored by Hon. Marcus Onobun was adopted at the plenary session.The CBN’s new policy revises ATM transaction fees, prescribing an increase in ATM withdrawal charges and a discontinuation of free ATM withdrawals for customers using other banks’ ATMs.
This move imposes additional financial burdens on Nigerians, who are already grappling with multiple economic hardships.According to the new policy, customers withdrawing from their bank’s ATM will continue to enjoy free withdrawals. However, customers from other banks transacting from ATMs within bank premises will be charged N100 per N20,000 withdrawal.
Additionally, customers from other banks transacting from ATMs outside bank premises will be charged N100 plus a surcharge of up to N500.The House of Representatives expressed concerns that the imposition of additional ATM withdrawal charges will further limit financial inclusion for Nigerians. This is particularly significant, as the policy may discourage low-income earners from accessing banking services, thereby contradicting the CBN’s financial inclusion agenda.
Hon. Marcus Onobun emphasized 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 of Representatives resolved to urge the CBN to immediately suspend the implementation of this policy, pending proper engagement with the relevant committees on Banking, Finance, and Financial Institutions. The motion was unanimously supported by members and referred to the Committee on Banking Finance and Financial Institutions for further legislative action.
The Socio-Economic Rights and Accountability Project (SERAP) has also urged President Bola Tinubu to direct the CBN to suspend the implementation of the increase in ATM transaction fees, pending the hearing and determination of the lawsuit challenging the legality of the increase.
