The House of Representatives has asked the Central Bank of Nigeria (CBN) to immediately suspend the increase of Automated Teller Machine (ATM) transaction charges and stoppage of free ATM withdrawals for customers from other banks in the country.
This followed the adoption of a motion on matters of urgent national importance moved by the member representing Essan Central/Essan West/Igueben federal constituency of Edo State, Hon. Marcus Onobun, at plenary yesterday.
Moving the motion, Onobun said the apex bank in its new circular 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 the machine withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ teller machines, thereby imposing additional financial burdens on Nigerians.
According to the lawmaker, the said section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 to N35 per transaction.
He noted that with the new policy, customers withdrawing from their Bank’s ATMs will continue to enjoy free withdrawals but 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,” Onobun said.
He expressed worry that citizens of Nigeria were 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.
“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.
“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; Note that the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress,” he argued.
When the House adopted the motion, it reiterated the call on CBN to immediately suspend the implementation of the policy, pending proper engagement with its relevant committees.
