House Of Reps Urges CBN To Suspend ATM Charges

By Akinwale Kasali

The House of Representatives has urged the Central Bank of Nigeria, CBN, to suspend the implementation of the increment in Automated Teller Machine transaction charges with immediate effect.

The Lawmakers said the decision should be rescinded putting into consideration the economic situation in the country.

The decision of the House was sequel to the adoption of a motion of urgent public importance sponsored by the member representing Esan Central /Esan West/Igueben Federal Constituency, Edo State, Marcus Onobun, during Tuesday’s plenary.

Onobun, while addressing  his colleagues noted that the Apex Bank through a recent circular, prescribed 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 new policy will allow customers withdrawing from their bank’s ATMs to continue to enjoy free withdrawals, while a fee of N100 will be applied to N20,000 withdrawals for customers from other banks transacting from ATMs within the bank premises.

Similarly, customers from other banks transacting from ATMs outside the premises of the bank such as malls, marketplaces, and other public places will be charged N100 and an additional surcharge of N500.

This development has generated mixed reactions from Nigerians who bemoan the financial burden meted on Nigerians, coupled with pathetic state of the nation’s economy.

However, Onobun, a Peoples Democratic Party, PDP, Lawmaker, said that Nigerians “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 their welfare.”

He added: “We are 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 banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.”

The Speaker, Tajudeen Abbas,  who presided over the plenary session put the motion to voice vote and it was overwhelmingly supported by the lawmakers, prompting the House to urge CBN to immediately suspend the implementation of the policy, pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.