Central Bank of Nigeria, CBN has been ordered by the House of Representatives to suspend the implementation of an increase in ATM transaction charges.
According to a new CBN policy, customers withdrawing from their banks’ ATMs will continue to enjoy free withdrawals.
However, a fee of N100 per N20,000 withdrawal will be applied to customers from other Banks transacting from ATMs within the bank premises.
Similarly, customers from other Banks transacting from ATMs outside the premises of the bank (Malls, Market places, and other public places) will be charged N100 and an additional surcharge of N500.
But the House at a plenary presided by Speaker Tajudeen Abass, while adopting the motion initiated by Mr. Marcus Onobun ordered the immediate suspension of the implementation of the policy.
The suspension to remain pending proper engagement with the relevant committees on Banking, Finance, and Financial Institutions.
Onobun, while moving the motion argued that 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.
The Edo-born lawmaker further stated that since the citizenry is already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hikes, and numerous banking and service charges that significantly reduce disposable income, there was no need to impose such charges.
He contended that since the banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.
He stated that since the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress; imposing such charges is not only contradictory but counterproductive
