The House of Representatives has demanded the Central Bank of Nigeria (CBN) to immediately suspend the implementation of the increase in ATM transaction charges and stoppage of free ATM withdrawals for customers from other banks in Nigeria.
It says the suspension of the policy, pending proper engagement with the relevant committees on Banking, Finance, and Financial Institutions.
This was sequel to the adoption of a motion of urgent public importance “For The Suspension Of The Central Bank Of Nigeria Increase In ATM Transaction Charges And Stoppage Of Free ATM Withdrawals For Customers From Other Banks In Nigeria”, sponsored by Mr. Marcus Onobun.
In his lead debate, Mr. Onobun said that the House was aware that the Central Bank of Nigeria (CBN) in its new circular, has reviewed the ATM transaction fees stipulated under section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions”, prescribing 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.
“Also aware that the said section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 Naira to N35 per transaction;
Note that according to this new policy, customers withdrawing from their Bank’s ATMs will continue to enjoy free withdrawals. However, a fee of N100 per N20,000 withdrawals will be applied to customers from other Banks transacting from ATMs within the Bank premises. Similarly, Customers from other Banks transacting from ATM outside the premises of the Bank (Malls, Market places, and other public places) will be charged N100 and an additional surcharge of N500.
“Disturbed that the citizens of Nigeria 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 the economic welfare of citizens;
“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;
“Cognizant of the fact that 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 motion said.
He noted that “the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress”.
The motion was referred to the committee on Finance to ensure compliance and report back to the House within four weeks
Olusola Akintonde
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