The House of Representatives has called for the immediate suspension of the recent directive by the Central Bank of Nigeria (CBN) to increase ATM withdrawal charges and discontinue free withdrawals for customers using other banks’ ATMs.
The lawmakers argue that the policy places an unnecessary financial burden on Nigerians already facing economic hardship.
During plenary on Tuesday, Hon. Marcus Onobun moved a motion condemning the policy, which was introduced in a new CBN circular revising Section 10.7 of its Guide to Bank Charges.
He noted that the decision to increase ATM charges is unjustifiable, given that banks continue to make substantial profits without corresponding improvements in service delivery.
According to the revised policy, customers using their own bank’s ATMs will continue to enjoy free withdrawals, while those withdrawing from another bank’s ATM within the bank’s premises will now pay N100 per N20,000 withdrawal.
Customers withdrawing from ATMs outside bank premises, such as in malls, markets, and public places, will be charged N100 plus an additional N500 surcharge.
The House of Representatives criticized the decision, stating that Nigerians are already struggling with multiple economic challenges, including high inflation, rising fuel prices, electricity tariff hikes, and excessive banking charges.
Lawmakers also warned that the policy contradicts the CBN’s financial inclusion agenda, as higher withdrawal fees could discourage low-income earners and rural dwellers from using banking services.
The House passed a resolution urging the CBN to suspend the implementation of the policy and engage with relevant committees on banking, finance, and financial institutions before making such decisions.
“The role of government is to protect citizens from exploitative financial practices,” the lawmakers stated, adding that the new charges could lead to further economic distress for millions of Nigerians.