The House of Representatives has taken a firm stance against the Central Bank of Nigeria’s (CBN) recent decision to increase Automated Teller Machine (ATM) transaction charges, urging the apex bank to immediately suspend the policy’s implementation.
This call for suspension reflects the House’s concern for the economic well-being of Nigerians amidst challenging times.
The House’s decision stemmed from a motion of urgent public importance, put forth by Marcus Onobun, the representative for Esan Central/Esan West/Igueben Federal Constituency in Edo State. This motion highlighted the adverse impact of the new charges on the Nigerian populace.
Onobun brought to the attention of his fellow lawmakers that the CBN, through a recent circular, had mandated an increase in ATM withdrawal charges and discontinued the practice of free ATM withdrawals for customers utilizing ATMs from banks other than their own. This move, he argued, would impose an additional financial strain on Nigerians.
Under the new policy, while customers withdrawing from their own bank’s ATMs would continue to enjoy free transactions, those withdrawing from other banks’ ATMs would incur charges. Specifically, a N100 fee would be applied to N20,000 withdrawals for customers from other banks using ATMs within bank premises.
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Furthermore, customers from other banks using ATMs located outside bank premises, such as those in malls, marketplaces, and other public spaces, would be subject to a N100 fee and an additional surcharge of N500. This tiered charging system has raised concerns about its potential impact on accessibility and affordability.
The PDP lawmaker emphasized the severe economic hardships already faced by Nigerians, including high inflation rates, increased fuel prices, electricity tariff hikes, and various banking and service charges. He argued that these factors collectively diminish disposable income and negatively impact the welfare of citizens.
Onobun expressed concern that the implementation of additional ATM withdrawal charges would further impede financial inclusion, particularly for low-income earners, by discouraging them from accessing banking services. He argued that this directly contradicts the CBN’s stated goal of promoting financial inclusion.
The lawmaker also highlighted the banking sector’s consistent profitability, asserting that imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable
The Speaker of the House, Tajudeen Abbas, presided over the plenary session and conducted a voice vote on the motion, which received overwhelming support from the lawmakers. Subsequently, the House formally called upon the CBN to suspend the implementation of the new policy, pending thorough engagement with the relevant Committees on Banking, Finance, and Financial Institutions.
