- The legislative body asserted that the new CBN policies on ATM use will put a strain on the finances of already struggling Nigerians.
Nigeria’s lower legislative chamber, the House of Representatives, has opposed the recent increase in ATM transaction charges by the Central Bank of Nigeria, CBN.
The Green Chamber demanded the immediate suspension of the hike and the reversal of the discontinuation of free ATM withdrawals for customers from other banks imposed by the apex bank.
The legislative body asserted that the new CBN policies on ATM use will put a strain on the finances of already struggling Nigerians.
It stated that the banking sector has continued to record huge profits, and as such imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.
The House was opined that the imposition of additional ATM withdrawal charges would 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 decision of the House was consequent upon the adoption of a motion moved at the plenary on Tuesday by Marcus Onobun.
Moving the motion, the lawmaker said the CBN in its new circular had 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.
He stressed that the said Section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 to N35 per transaction.
Onobun said according to the new policy, customers withdrawing from their bank’s ATMs would continue to enjoy free withdrawals.
However, he explained that a fee of N100 per N20,000 withdrawals would be applied to customers from other banks transacting from ATMs within the bank premises.
Onobun emphasised that customers from other banks transacting from ATMs outside the premises of the bank — malls, market places, and other public places – would be charged N100 and an additional surcharge of N500.
The House in its resolutions urged the CBN “to immediately suspend the implementation of this policy, pending proper engagement with the relevant committees on banking, finance, and financial institutions”.
It lamented that Nigerians were 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.
The lawmakers said the role of government includes protecting citizens from exploitative financial practices that might lead to further economic distress
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