The House of Representatives on Tuesday has called on the Central Bank of Nigeria (CBN) to suspend the implementation of increased Automated Teller Machine (ATM) transaction charges, citing the prevailing economic hardship in the country.
This resolution followed the adoption of a motion of urgent public importance sponsored by Hon. Marcus Onobun, representing Esan Central/Esan West/Igueben Federal Constituency, Edo State, during plenary session.
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Onobun while leading the debate expressed concerns that the apex bank, through a recent circular, had introduced higher ATM withdrawal charges and discontinued free ATM withdrawals for customers using other banks’ ATMs. He warned that the policy would impose additional financial burdens on Nigerians already struggling with economic challenges.
Under the new policy, customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals. However, those using ATMs of other banks within bank premises will now pay N100 for every N20,000 withdrawal. The charges are even higher for customers using ATMs in locations such as malls and marketplaces, where they will pay N100 plus an additional surcharge of N500.
The lawmaker, a member of the Peoples Democratic Party (PDP), criticized the new policy, stating that Nigerians are already burdened with high inflation, increased fuel prices, electricity tariff hikes, and multiple banking charges, all of which reduce disposable income and negatively impact citizens’ welfare.
“We are worried that the imposition of additional ATM withdrawal charges will further limit financial inclusion by discouraging low-income earners from accessing banking services, contradicting the CBN’s financial inclusion agenda,” Onobun argued.
He further pointed out that despite significant profits recorded by the banking sector, there has been no corresponding improvement in service delivery or infrastructure to justify the additional charges.
Following deliberations, Speaker Tajudeen Abbas, who presided over the session, put the motion to a voice vote, and it was overwhelmingly supported by the lawmakers.
Consequently, the House urged the CBN to immediately suspend the implementation of the policy pending further engagement with the relevant committees on banking, finance, and financial institutions.