The House of Representatives has urged the Central Bank of Nigeria (CBN) to suspend the recent increase in automated teller machine (ATM) transaction fees.
This resolution was reached during plenary on Tuesday following the adoption of a motion moved by Marcus Onobun, a lawmaker representing Edo State.
Recall
In February, the CBN announced an upward revision of ATM transaction charges, which took effect on March 1.
The regulatory body explained that this adjustment was necessary to address rising operational costs and enhance efficiency within the banking sector.
Under the new policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free transactions.
However, a ₦100 fee per ₦20,000 withdrawal will now apply at on-site ATMs (machines located within bank branches).
For withdrawals at ATMs of other banks (Not-on-Us transactions), an off-site withdrawal will attract a ₦100 fee along with a surcharge of up to ₦450 per ₦20,000 withdrawal.
The CBN clarified that this surcharge serves as income for the “ATM deployer/acquirer” and must be disclosed to customers at the point of withdrawal.
The last revision of ATM withdrawal fees occurred in 2019, when the CBN reduced the charge from ₦65 to ₦35.
While the latest changes will result in higher costs for ATM transactions, the CBN emphasized that the review aligns with Section 10.7 of the “CBN Guide to Charges by Banks, and Other Financial and Non-Bank Financial Institutions (2020).”
The Motion
Presenting the motion, Onobun stated that the increase in ATM transaction charges would create “additional financial burdens” for Nigerians.
He pointed out that citizens are already “grappling with multiple economic hardships” such as inflation, high fuel costs, and rising electricity tariffs.
The lawmaker also highlighted the various banking and service charges that, according to him, “significantly reduce disposable income and negatively impact the economic welfare of citizens.”
He warned that the introduction of additional withdrawal charges could “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 banking sector has continued to record significant profits. Imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable,” he added.
The legislator stressed that the government must take steps to protect citizens from “exploitative financial practices that may lead to further economic distress.”
The motion was unanimously adopted after Tajudeen Abbas, Speaker of the House, called for a voice vote.
