The House of Representatives has called for an immediate suspension of the Central Bank of Nigeria’s new policy hiking ATM transaction charges.
The decision came after a motion moved by Rep. Marcus Onobun during plenary in Abuja on Tuesday.
Under the new policy, which took effect on March 1, 2025, customers using other banks’ ATMs within bank premises will be charged N100 for every N20,000 withdrawn. Those using ATMs outside bank premises will also face an extra surcharge of N500.
Onobun warned that the policy would add to the financial burden on Nigerians already facing economic challenges. He expressed concerns that the additional fees would discourage low-income earners from accessing banking services and contradict the CBN’s financial inclusion agenda. He also pointed out that the banking sector continues to make significant profits without corresponding improvements in service delivery or infrastructure, making the charges hard to justify.
He said: “Note that according to this new policy, customers withdrawing from their Bank’s ATMs will continue to enjoy free withdrawals. However, a fee of N100 per N20,000 withdrawals will be applied to customers from other Banks transacting from ATMs within the Bank premises.
“Similarly, Customers from other Banks transacting from ATM outside the premises of the Bank (Malls, Market places, and other public places) will be charged N100 and an additional surcharge of N500.
“The 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.
“Imposition of additional ATM withdrawal charges will 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 fact 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 motion has been referred to the House Committees on Banking, Finance, and Financial Institutions for further legislative action.
