Reps direct CBN to cancel ATM withdrawal charges

The House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend the implementation of the increment in Automated Teller Machine transaction charges given the economic situation in the country.

The decision of the House was sequel to the adoption of a motion of urgent public importance sponsored by the member representing Esan Central/Esan West/Igueben Federal Constituency, Edo State, Marcus Onobun, during Tuesday’s plenary.

Addressing his colleagues on the floor, Onobun noted that the apex bank through a recent circular, prescribed an increase in ATM withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ ATMs, thereby imposing additional financial burdens on Nigerians.

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Recall that with the new policy, customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals.

However, a fee of ₦100 will be applied to ₦20,000 withdrawals for 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, such as malls, marketplaces, and other public places, will be charged ₦100 and an additional surcharge of ₦500.

The Peoples Democratic Party lawmaker argued that Nigerians “Are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hike, and numerous banking and service charges that significantly reduce disposable income and negatively impact their welfare.

“We are worried 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 banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.”

The Speaker, Tajudeen Abbas, who presided over the plenary session put the motion to voice vote and it was overwhelmingly supported by the lawmakers.

The House thereafter urged the CBN to immediately suspend the implementation of the policy, pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.

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