Reps Suspend Implementation of New CBN Charges Policy

Reported by Ilesanmi Ifeoluwa D

The House of Representatives has suspended the enforcement of the recent circular issued by the Central Bank of Nigeria (CBN) concerning ATM transaction fees and the removal of free ATM withdrawals for customers using other banks’ ATMs, as outlined in a recent circular by the apex bank.

On Tuesday, through a motion of urgent public significance put forward by Marcus Onobun (PDP, Edo), he requested the suspension of the policy until there is adequate engagement with the appropriate committees of the House.

While presenting the motion, Onobun highlighted that the CBN recently issued a circular revising ATM transaction fees under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions.

According to The Nation, He explained that the new directive increases ATM withdrawal charges and eliminates free withdrawals for customers using other banks’ ATMs, thereby imposing additional financial burdens on Nigerians.

According to him, Section 10.7 of this Guide was last reviewed in 2019, reducing ATM transaction fees from N65 Naira to N35 per transaction.

He said, “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 ATMs outside the premises of the bank (malls, marketplaces, and other public places) will be charged N100 and an additional surcharge of N500.

“The citizens of Nigeria are currently facing a variety of economic challenges, such as elevated inflation, rising fuel costs, hikes in electricity tariffs, and various banking and service fees that greatly diminish disposable income and adversely affect the economic well-being of the populace.

“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 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 role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress.".