The House of Representatives has urged the Central Bank of Nigeria to suspend the increase in Automated Teller Machine transaction charges due to the country’s economic situation. The decision was made during Tuesday’s plenary after adopting a motion of urgent public importance.
The motion was sponsored by Marcus Onobun, a member representing Esan Central/Esan West/Igueben Federal Constituency, Edo State. Addressing his colleagues, Onobun noted that the apex bank, through a recent circular, announced higher ATM withdrawal charges and the removal of free withdrawals for customers using other banks’ ATMs. He argued that these changes would impose additional financial strain on Nigerians.
Recall that with the new policy, customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals. However, 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. The Peoples Democratic Party lawmaker argued 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”.
“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. The House thereafter urged the CBN to immediately suspend the implementation of the policy, pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.
