The House of Representatives has passed a resolution urging the suspension of a newly introduced increase in Automated Teller Machine (ATM) transaction charges and the halt of free ATM withdrawals for customers using machines outside their banks in Nigeria.
The motion was raised by lawmaker Marcus Onobun, who highlighted a recent circular from the Central Bank of Nigeria (CBN) which outlined the new policy. Lawmakers expressed concern that the changes would place additional financial strain on Nigerians.
In response, the House has asked the CBN to suspend the policy until it can engage with relevant committees on banking, finance, and financial institutions to discuss its implications further.
Details of the CBN Circular:
On February 10, 2025, the CBN announced that as of March 1, 2025, customers will be charged ₦100 for every ₦20,000 withdrawn from an ATM of a different bank. Additionally, withdrawals from off-site ATMs (those not located at a bank’s premises) such as those at malls and eateries, will incur a surcharge of up to ₦500, on top of the ₦100 charge for using ATMs of other banks.
The CBN has explained that the fee increase was necessary to offset rising costs and enhance ATM service efficiency across the country, while also encouraging the broader deployment of ATMs. However, the policy has faced significant criticism from various quarters, with detractors arguing that it would create undue financial hardship for customers, particularly those who frequently use ATMs of other banks.
Despite the controversy, the CBN has defended the policy, claiming that it is beneficial for both customers and commercial banks.
