Reps demands CBN halt ATM transaction fee hike amid economic hardship

The House of Representatives has called on the Central Bank of Nigeria (CBN) to immediately suspend the recent increase in Automated Teller Machine (ATM) transaction charges, citing the worsening economic conditions faced by Nigerians.

The resolution was passed on Tuesday following a motion of urgent public importance moved by Marcus Onobun, the lawmaker representing Esan Central/Esan West/Igueben Federal Constituency of Edo State, during plenary.

While presenting his motion, Onobun raised concerns over a recent directive from the CBN that introduced higher fees for ATM withdrawals and removed the previously free withdrawal service for customers using ATMs of banks other than their own.

Under the new policy, customers withdrawing cash from their bank’s ATMs will continue to enjoy free transactions. However, those using ATMs of other banks will now face additional charges.

Specifically, withdrawals of N20,000 from ATMs located within bank premises will attract a N100 fee, while transactions at offsite ATMs, such as those in malls and marketplaces, will be subject to a N100 fee plus an additional N500 surcharge.

Expressing deep concern over the policy, Onobun stated, “Nigerians are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hikes, and numerous banking and service charges that significantly reduce disposable income and negatively impact their welfare.”

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He further argued that the additional ATM withdrawal charges could discourage low-income earners from using banking services, which runs contrary to 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.

Following a voice vote in which the majority of lawmakers backed the motion, the House of Representatives formally urged the CBN to halt the implementation of the new ATM transaction charges.

The House also recommended that the apex bank engage with the relevant committees on Banking, Finance, and Financial Institutions before taking any further action on the policy.

The CBN is now expected to provide a response to the directive, while consumers and financial experts continue to debate the potential implications of the proposed charges on Nigeria’s banking sector and broader economy.