Reps Demand Immediate Suspension of CBN’s ATM Charge Hike

 Reps Demand Immediate Suspension of CBN’s ATM Charge Hike

The House of Representatives has called for the immediate suspension of the recent increase in ATM transaction charges and the removal of free ATM withdrawals for customers using other banks' ATMs, as introduced by the Central Bank of Nigeria (CBN).

Lawmakers criticized the policy, stating that the hike in ATM withdrawal fees places an additional financial burden on Nigerians, especially as banks continue to report significant profits without notable improvements in service delivery or infrastructure.

Concerns Over Financial Inclusion
The House expressed concerns that the additional withdrawal charges would discourage low-income earners from using banking services, contradicting the CBN’s financial inclusion goals.

The decision came after the adoption of a motion moved by Marcus Onobun during Tuesday’s plenary session.

Breakdown of the New ATM Charges
Onobun explained that the CBN’s new circular had revised ATM transaction fees under Section 10.7 of the CBN Guide to Charges—last updated in 2019, when ATM withdrawal fees were reduced from N65 to N35 per transaction.

Under the new policy:
Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals.
Customers using other banks’ ATMs within bank premises will be charged N100 per N20,000 withdrawal.
Customers withdrawing from ATMs located outside bank premises—such as malls or marketplaces—will face an N100 charge plus an additional N500 surcharge.

House Resolutions
In its resolutions, the House urged the CBN to suspend the implementation of the policy pending further engagement with relevant committees on banking, finance, and financial institutions.

Lawmakers noted that Nigerians are already struggling with high inflation, fuel price hikes, increased electricity tariffs, and multiple banking charges, which significantly reduce disposable income and negatively impact their economic well-being.

The House emphasized that the government must protect citizens from exploitative financial policies that could further deepen economic hardships.