ATM Charge Increase: Reps Call for Immediate Suspension of CBN’s

By Divine Sam

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

The lawmakers argued that the CBN’s decision to increase ATM withdrawal fees and eliminate free withdrawals for customers using ATMs of other banks adds unnecessary financial strain on Nigerians.

They pointed out that the banking sector continues to make substantial profits, and imposing additional charges on consumers without corresponding improvements in service quality or infrastructure is unjustifiable.

The House expressed concern that these new charges would further hinder financial inclusion, especially for low-income earners, by discouraging them from accessing banking services. This, the lawmakers argued, contradicts the CBN’s stated goal of improving financial inclusion.

The call for suspension followed the adoption of a motion at the plenary on Tuesday by Rep. Marcus Onobun. Onobun highlighted that the CBN, in its new circular, had reviewed the ATM transaction fees outlined in Section 10.7 of the CBN Guide to Charges for banks and other financial institutions. The last review of these fees was in 2019, which lowered ATM transaction fees from N65 to N35 per transaction.

Onobun explained that under the new policy, customers withdrawing from their own bank’s ATMs would still enjoy free withdrawals. However, customers using ATMs from other banks within the same bank premises would be charged a fee of N100 per N20,000 withdrawal. Additionally, customers using ATMs located outside the bank premises—such as those in malls, markets, and other public spaces—would face a N100 fee along with an extra surcharge of N500.

In response, the House urged the CBN to immediately suspend the implementation of this policy and engage with the relevant committees on banking, finance, and financial institutions before moving forward. The lawmakers expressed concern that Nigerians are already facing significant economic challenges, including high inflation, rising fuel prices, increased electricity tariffs, and a range of banking and service charges that are eroding disposable income and negatively affecting citizens’ economic well-being.

The lawmakers emphasized that one of the government’s key responsibilities is to protect citizens from exploitative financial practices that could exacerbate the country’s economic difficulties.