House Calls For Immediate Suspension Of Increased Charges
Nigeria’s Lower Legislative Chamber, has urged the Central Bank of Nigeria (CBN), to suspend the recent increase in ATM charges pending consultation.
Following the adoption of a motion of urgent public importance moved by Marcus Onobun at plenary on Tuesday, the House directed the Apex bank to hold talks with its committees on Banking, Finance, and Financial Institutions on the new policy.
Presenting the motion, Onobun informed the House that the CBN in its new circular, has reviewed the ATM transaction fees stipulated under section 10.7 of its “Guide to Charges by Banks.”
He noted that the action has resulted
in 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.
The lawmaker further disclosed that the said section 10.7 of the Guide was last reviewed in 2019, reducing ATM transaction fees from N65 Naira to N35 per transaction.
Onobun explained that “according to the 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.”
The Edo lawmaker expressed concern 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.
He said, ” 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.”
Onobun however submitted that the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress.
When the question was put, the motion enjoyed the unanimous support of the House and the Central Bank of Nigeria was urged to immediately suspend the implementation of the policy.
