The House of Representatives has passed a resolution urging the Central Bank of Nigeria (CBN) to suspend its newly introduced Automated Teller Machine (ATM) transaction charges, which include the discontinuation of free withdrawals for customers using other banks’ ATMs.
This decision followed a motion of urgent public importance moved by Hon. Marcus Onobun, who raised concerns over the CBN’s circular announcing the new policy. Lawmakers expressed fears that the directive would impose additional financial hardship on Nigerians already grappling with economic challenges.
The House, in its resolution, called on the apex bank to suspend the implementation of the policy pending further engagements with the relevant committees on banking, finance, and financial institutions.
On February 10, 2025, the CBN announced that customers using ATMs outside their banks would be charged ₦100 per every ₦20,000 withdrawn, scrapping the previous policy that allowed three free interbank ATM withdrawals per month. Furthermore, off-site ATMs located in public places like shopping malls and eateries would attract an additional surcharge of up to ₦500 per ₦20,000 withdrawn.
Defending its decision, the CBN cited rising operational costs and the need to enhance 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 sparked public outcry, with critics arguing that it disproportionately affects ordinary Nigerians who rely on ATMs for cash withdrawals. Despite the backlash, the CBN has insisted that the revised charges will benefit both customers and financial institutions.
With the House of Representatives stepping in, all eyes are now on the CBN to see whether it will heed the lawmakers’ call for a suspension or proceed with the implementation of the new charges from March 1, 2025.
