House Of Representatives Halts CBN’s New ATM Transaction Charges

Lawmakers Demand Suspension of New Bank Withdrawal Fees

The Nigerian House of Representatives has directed the Central Bank of Nigeria (CBN) to immediately suspend the implementation of its newly introduced ATM transaction charges and the removal of free withdrawals for customers using other banks’ ATMs.

This decision was reached on Tuesday after lawmakers adopted a motion of urgent public importance sponsored by Marcus Onobun (PDP, Edo). The House emphasized that the policy must be put on hold until relevant committees engage with the CBN to assess its impact.

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Lawmakers Reject New ATM Withdrawal Fees

While presenting the motion, Onobun expressed concerns over the recent amendments made by the CBN under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions. He pointed out that the new policy increases ATM withdrawal fees and eliminates free withdrawals for customers using other banks’ ATMs, placing an additional financial burden on Nigerians.

He reminded the House that the last review of Section 10.7 in 2019 had reduced ATM withdrawal charges from ₦65 to ₦35 per transaction. However, the new policy mandates a fee of ₦100 per ₦20,000 withdrawal for customers using other banks’ ATMs within bank premises. Additionally, customers using ATMs outside bank premises, such as in malls or marketplaces, will be charged ₦100 plus an extra ₦500 surcharge.

Concerns Over Financial Burden on Nigerians

Onobun raised alarm that this policy comes at a time when Nigerians are already struggling with rising inflation, soaring fuel prices, increased electricity tariffs, and excessive banking charges. He argued that the new charges will further reduce disposable income and negatively impact the financial well-being of citizens.

“The imposition of additional ATM withdrawal charges will discourage financial inclusion, particularly for low-income earners, and contradict the CBN’s financial inclusion agenda,” Onobun warned.

He also criticized the banking sector, stating that despite recording substantial profits, banks continue to introduce excessive charges without improving service quality or infrastructure.

Call for Government Intervention

The House of Representatives emphasized that the government’s role includes protecting citizens from exploitative financial practices that could worsen economic hardship. Lawmakers insisted that the CBN must halt the new ATM transaction charges until a thorough review is conducted.

With economic challenges mounting, the House’s intervention aims to prevent further financial strain on Nigerians and ensure that banking policies align with the economic realities faced by the population.