Nigerians burdened by rising costs of living have been given a temporary reprieve as the House of Representatives has suspended the implementation of the Central Bank of Nigeria’s (CBN) controversial new ATM withdrawal charges. The decision, reached on Tuesday, comes amid widespread criticism that the policy would impose additional financial hardship on citizens already struggling with inflation, increased fuel prices, and soaring electricity tariffs.
The resolution was passed following the adoption of an urgent motion of public importance sponsored by Hon. Marcus Onobun, who raised concerns over the severe economic impact the new policy would have on ordinary Nigerians. The lawmaker pointed out that at a time when citizens are barely surviving under the weight of economic challenges, an increase in banking charges would only worsen their financial struggles.
The new CBN policy, outlined in a circular reviewing section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions,” proposed an increase in ATM withdrawal fees. The most controversial aspect of the policy is the discontinuation of free ATM withdrawals for customers using other banks’ ATMs. Under the new directive, customers withdrawing from their bank’s ATMs would still enjoy free transactions, but those using other banks’ ATMs within bank premises would be charged N100 per N20,000 withdrawal. Those withdrawing from ATMs located outside bank premises, such as malls and marketplaces, would face a charge of N100 plus an additional N500 surcharge.
Hon. Onobun strongly opposed the policy, stating that it contradicts the CBN’s financial inclusion agenda by discouraging low-income earners from accessing banking services. He noted that the CBN had previously reviewed ATM transaction fees in 2019, reducing the charges from N65 to N35 per transaction. The sudden reversal, he argued, would make financial transactions more expensive for everyday Nigerians, pushing more people towards cash transactions and informal banking alternatives.
The lawmaker further criticized the banking sector’s approach, pointing out that despite recording massive profits, banks continue to impose additional charges on customers without a corresponding improvement in service delivery. He described this as an unjustifiable burden on consumers, emphasizing that the role of government is to protect citizens from exploitative financial practices that could further push them into economic distress.
The House of Representatives also expressed concerns over the broader impact of the policy on Nigeria’s economic landscape. Lawmakers noted that excessive banking charges could limit access to financial services, particularly among low-income earners, further widening the gap between the banked and unbanked population. The imposition of higher fees, they argued, runs counter to the country’s push for a cashless economy, as many Nigerians would likely revert to cash-based transactions to avoid excessive charges.
With public pressure mounting and economic hardship deepening, the House mandated the CBN to immediately suspend the implementation of the new policy, pending a thorough engagement with relevant committees on Banking, Finance, and Financial Institutions. Lawmakers stressed the need for greater transparency and public consultation before introducing policies that directly affect the financial well-being of Nigerians.
The decision by the House of Representatives to halt the new ATM withdrawal charges has been met with widespread relief, but questions remain about whether the CBN will comply with the directive or attempt to justify the policy. With Nigeria’s economy under strain, any decision affecting financial transactions will be closely scrutinized by both lawmakers and the public in the coming weeks.
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