The House of Representatives on Tuesday directed the Central Bank of Nigeria(CBN) to suspend the increase in ATM fees in light of the nation’s economic challenges.
The House’s decision followed the acceptance of a motion of urgent public interest during Tuesday’s plenary, which was presented by Honourable Marcus Onobun, the representative for the Esan Central/Esan West/Igueben Federal Constituency in Edo State.
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Speaking to his colleagues on the floor, Onobun stated that the apex bank had recently issued a circular to raise ATM withdrawal fees and end free ATM withdrawals offered to consumers using ATM machines operated by other banks. He pointed out that this move will further burden Nigerians, many of whom are already struggling with economic hardships, including high inflation, rising fuel prices, increased electricity tariffs, and a multitude of banking and service charges that significantly reduce disposable income.
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Recall that the new policy will not affect the free withdrawals that clients can make from their bank’s ATMs. Customers from other banks who use ATMs on the bank’s property, however, will be charged N100 for every N20,000 withdrawal. Similarly, N100 plus an extra N500 surcharge will be applied to customers of other banks who use ATMs located outside the bank’s grounds, such as in shopping centres, marketplaces, and other public areas.
ATM transaction charges hike amid economic hardship
The Peoples Democratic Party lawmaker said 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.”
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“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 resolution was placed to a voice vote by Speaker Tajudeen Abbas, who oversaw the plenary session, and it received overwhelming support from the legislators.
Consequently, the House recommended the CBN to halt the policy’s implementation until it was properly discussed with the pertinent Banking, Finance, and Financial Institutions Committees.