The House of Representatives has called for the suspension of the Central Bank of Nigeria’s (CBN) recent increase in Automated Teller Machine (ATM) transaction charges, citing the current economic challenges faced by Nigerians. The motion, sponsored by Marcus Onobun, the lawmaker for Esan Central/Esan West/Igueben Federal Constituency, was adopted during a plenary session on Tuesday. Onobun argued that the policy, which increases charges for withdrawals made from ATMs of other banks, would impose additional financial burdens on Nigerians already struggling with high inflation, rising fuel prices, electricity tariffs, and other service charges.
The new policy stipulates that while customers can continue to withdraw for free from their own bank’s ATMs, those using ATMs from other banks would incur charges: N100 for withdrawals within the bank’s premises, and N100 plus an additional N500 surcharge for transactions at external locations like malls and marketplaces.
The lawmaker raised concerns that the increase would disproportionately affect low-income earners, potentially discouraging them from accessing banking services and hindering financial inclusion, which the CBN has been aiming to promote. He also noted that despite the banking sector’s significant profits, the added charges are unjustified, especially since there have been no corresponding improvements in service delivery or infrastructure.
The Speaker of the House, Tajudeen Abbas, put the motion to a voice vote, which was overwhelmingly in favor of suspending the policy. The House urged the CBN to halt the implementation of the charges until further discussions with the relevant committees on Banking, Finance, and Financial Institutions take place.