The House of Representatives on Tuesday halted the implementation of Central Bank of Nigeria (CBN) new policy on increased charges on ATM withdrawals.
The resolution was passed sequel to the adoption of an urgent motion of public importance sponsored by Hon. Marcus Onobun, who expressed grave concerns over the economic impact on Citizens across the country.
In his lead debate, Onobun argued that Nigerians are already burdened by rising costs, including increases in electricity and telecommunications tariffs.
He, therefore, warned that an increase in ATM withdrawal charges would further strain households struggling with the country’s economic realities.
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He said: “The House is aware that the Central Bank of Nigeria (CBN) in its new circular, has reviewed the ATM transaction fees stipulated under section 10.7 of the ‘CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions’, prescribing an increase in ATM withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ ATMs, thereby imposing additional financial burdens on Nigerians.
“The House is also aware that the said section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 to N35 per transaction.
“The House 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 House is disturbed that 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.
“The House is worried that the 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 House is cognizant of 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 House note that the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress,”
Hence, the lawmakers mandated the apex bank to immediately suspend the implementation of this policy, pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.
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