Reps Demand Immediate Suspension of ATM Charges Hike by CBN

The House of Representatives has called on the Central Bank of Nigeria (CBN) to immediately suspend the recent increase in Automated Teller Machine (ATM) transaction charges, as well as the discontinuation of free ATM withdrawals for customers using ATMs of other banks.

Lawmakers described the CBN’s directive as an additional financial burden on Nigerians, who are already struggling with economic hardship. They argued that while banks continue to report significant profits, there have been no corresponding improvements in service delivery or banking infrastructure to justify the new charges.

The House expressed concern that the additional fees would discourage low-income earners from using banking services, thereby undermining the CBN’s own financial inclusion goals.

The resolution followed the adoption of a motion presented at Tuesday’s plenary by Rep. Marcus Onobun, who drew attention to a recent CBN circular that amended Section 10.7 of the Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions. The section, last reviewed in 2019, had previously reduced interbank ATM withdrawal fees from N65 to N35.

According to Onobun, under the new directive, customers will continue to enjoy free withdrawals from their own banks’ ATMs. However, interbank ATM transactions conducted within bank premises would now attract a fee of N100 per N20,000 withdrawn. For transactions at off-site ATMs—such as those located in malls, marketplaces, and other public areas—a base charge of N100 will apply, along with an additional N500 surcharge.

The House urged the CBN to halt the implementation of the new charges until a thorough consultation is held with relevant legislative committees on banking and finance.

Lawmakers decried the timing of the policy, noting that Nigerians are already contending with rising inflation, increased fuel and electricity costs, and numerous banking and service charges that have reduced disposable income and worsened living conditions. They stressed the responsibility of government institutions to shield citizens from exploitative financial practices and policies that could deepen economic hardship.