Reps Orders CBN to Suspend Hike in ATM Transaction Charges

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Nigeria’s House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend the recent hike in automated teller machine (ATM) transaction charges. The House adopted a motion of urgent public importance sponsored by Marcus Onobun, urging the CBN to put the policy on hold until proper engagement with the relevant committees.

Onobun expressed concerns that the increased charges would impose additional financial burdens on Nigerians, who are already grappling with economic hardships. “The citizens of Nigeria are already grappling with multiple economic hardships, including high inflation, increased fuel prices, an electricity tariff hike, and numerous banking and service charges,” he said.

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The CBN’s new policy, as outlined in a recent circular, increases ATM withdrawal charges and discontinues free ATM withdrawals for customers using other banks’ ATMs. Onobun noted that this move would contradict the CBN’s financial inclusion agenda and discourage low-income earners from accessing banking services.

“The imposition of additional ATM withdrawal charges will further limit the financial inclusion of Nigerians… thereby contradicting the CBN’s financial inclusion agenda,” Onobun stated. He also emphasised that the banking sector’s significant profits do not justify imposing further charges on consumers without corresponding improvements in service delivery or infrastructure.

The House’s decision comes as the CBN’s new policy has sparked concerns among Nigerians, who are already struggling with economic challenges. The policy’s suspension is pending proper engagement with the relevant committees of the House.

Onobun further stated, “The role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress.” He urged the House to intervene and ensure that the CBN’s policy does not exacerbate the economic hardships faced by Nigerians.

The House’s resolution was supported by several lawmakers, who expressed concerns about the impact of the increased charges on Nigerians. They argued that the policy would disproportionately affect low-income earners and further widen the gap between the rich and the poor.

The CBN has not yet responded to the House’s resolution, but it is expected to engage with the relevant committees to discuss the policy and its implications. In the meantime, Nigerians will continue to feel the pinch of the increased charges, which many see as an additional burden in an already challenging economic environment.

As the debate over the CBN’s policy continues, one thing is clear: the increased charges have sparked widespread concern and outrage among Nigerians, who are calling for a review of the policy to ensure that it does not exacerbate the country’s economic challenges.

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