The House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend the planned increase in Automated Teller Machine (ATM) transaction charges and the removal of free ATM withdrawals for customers using other banks’ ATMs. The resolution followed a motion of urgent public importance moved by Hon. Marcus Onobun, who drew attention to a recent CBN circular announcing the new charges, set to take effect on March 1, 2025.
Lawmakers expressed concerns that the policy would impose additional financial burdens on Nigerians, particularly at a time when many are grappling with economic challenges. The House urged the CBN to suspend the policy pending proper engagement with relevant committees on banking, finance, and financial institutions.
In its circular dated February 10, 2025, the CBN announced that customers would no longer enjoy three free monthly withdrawals when using ATMs of banks other than their own. Under the new policy, customers withdrawing from other banks’ ATMs will be charged ₦100 for every ₦20,000 transaction. Additionally, for off-site ATMs—those located in public places like shopping malls and eateries—a surcharge of up to ₦500 per ₦20,000 will apply, in addition to the statutory ₦100 fee.
The CBN justified the revised charges, citing rising operational costs and the need to improve the efficiency of ATM services across the country. “This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service,” the circular stated.
However, the policy has faced widespread criticism from stakeholders, including lawmakers and members of the public, who argue that it will further strain the finances of ordinary Nigerians. Critics also contend that the move could discourage the use of ATMs, pushing more people toward cash transactions and undermining the CBN’s cashless policy objectives.
During the debate on the motion, lawmakers emphasized the need for the CBN to consider the economic realities faced by Nigerians and engage stakeholders before implementing such policies. They called for a thorough review of the policy to ensure it aligns with the interests of the public and the broader economy.
The House resolution reflects growing concerns about the impact of the new charges on financial inclusion and access to banking services, particularly for low-income earners. Many Nigerians rely on ATMs for their daily transactions, and the additional costs could make banking services less accessible for vulnerable populations.
The CBN, however, maintains that the policy is mutually beneficial to both customers and commercial banks. The apex bank argues that the revised charges will incentivize banks to deploy more ATMs and improve service quality, ultimately benefiting consumers.
As the debate continues, stakeholders are calling for a balanced approach that addresses the operational challenges faced by financial institutions while minimizing the financial burden on customers. The House of Representatives’ intervention underscores the need for inclusive policymaking and the importance of considering the broader socio-economic implications of regulatory decisions.
The CBN is expected to review the House resolution and engage with relevant stakeholders to address the concerns raised. The outcome of these discussions will determine whether the new ATM charges will be implemented as planned or revised to better reflect the needs of Nigerians.
In the meantime, the public is advised to stay informed about the policy changes and explore alternative banking options to minimize the impact of the new charges. The controversy highlights the delicate balance between regulatory efficiency and consumer protection in Nigeria’s evolving financial landscape.
