The House of Representatives has called for the immediate suspension of the Central Bank of Nigeria’s (CBN) new policy increasing ATM transaction charges and scrapping free ATM withdrawals for customers using other banks’ ATMs.
The resolution followed the adoption of a motion moved by Rep Marcus Onobun during plenary in Abuja.
Recall that the CBN’s new policy, which took effect on March 1, 2025, imposes a fee of N100 per N20,000 withdrawals for customers using other banks’ ATMs within bank premises, and an additional surcharge of N500 for transactions outside bank premises.
According to Onobun, the move by CBN will further burden Nigerians already grappling with economic hardships.
He expressed worries that the new charges will limit financial inclusion, particularly for low-income earners, and contradict the CBN’s financial inclusion agenda.
He also noted that the banking sector has continued to record significant profits without corresponding improvements in service delivery or infrastructure, making the new charges unjustifiable.
He said: “Aware that the said section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 Naira to N35 per transaction.
“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 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.
“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 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 role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress.
The motion was however referred to the committees on Banking, Finance, and Financial Institutions.for.further legislative action.
