Reps demand suspension of ATM transaction fees hike

The house of representatives has asked the Central Bank of Nigeria (CBN) to suspend the increase in automated teller machines (ATMs) transaction fees.

The resolution was passed during plenary on Tuesday sequel to the adoption of a motion sponsored by Marcus Onobun, a lawmaker from Edo state.

BACKGROUND

In February, the CBN announced an upward review of the transaction fees for ATMs, beginning from March 1.

The regulator said the move would address rising operational costs and enhance efficiency in the banking sector.

According to the new policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.

However, a N100 fee per N20,000 withdrawal will be applied at on-site ATMs (those located at bank branches).

For withdrawals at ATMs of other banks (Not-on-Us transactions), an off-site withdrawal will attract a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal.

The CBN noted that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal”.

The last time ATM transaction charges were reviewed was in 2019 when the CBN reduced the withdrawal fees from N65 to N35.

While the latest increase means Nigerians will pay more for ATM transactions, the apex bank said the review was in line with Section 10.7 of the “CBN guide to charges by banks, and other financial and non-bank financial institutions (2020)”.

THE MOTION

Moving the motion, Onobun said the ATM transaction increase would impose “additional financial burdens” on Nigerians.

The lawmaker said Nigerians are already “grappling with multiple economic hardships”, including inflation, high cost of petrol and electricity tariff.

The politician said customers are also facing “numerous banking and service charges that significantly reduce disposable income and negatively impact the economic welfare of citizens”.

“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,” he said.

“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 legislator added that the government needs to protect citizens from “exploitative financial practices that may lead to further economic distress”.

The motion was unanimously adopted when Tajudeen Abbas, speaker of the house, called for a voice vote.