Pushback on Banking Fees: Nigerian Lawmakers Suspend CBN’s New ATM Charges

The House of Representatives has directed the Central Bank of Nigeria (CBN) to immediately halt the implementation of its newly introduced ATM transaction charges and the removal of free withdrawals for customers using other banks’ ATMs.

TrackNews Media reports that this decision was reached on Tuesday after lawmakers adopted a motion of urgent public importance sponsored by Marcus Onobun (PDP, Edo).

The House insisted that the policy be suspended until the relevant committees engage with the apex bank.

While presenting the motion, Onobun highlighted that the CBN recently amended its guidelines under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions.

He explained that the new policy increases ATM withdrawal fees and eliminates free withdrawals for customers using ATMs outside their bank, thereby adding to the financial burden of Nigerians.

According to him, Section 10.7 of the guide was last reviewed in 2019, reducing ATM withdrawal charges from ₦65 to ₦35 per transaction.

He stated, “According to this new policy, customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals. However, a fee of ₦100 per ₦20,000 withdrawal will be applied to customers from other banks transacting at ATMs within bank premises.”

He further noted, “Similarly, customers from other banks using ATMs located outside the bank’s premises, such as malls and marketplaces, will be charged ₦100 plus an additional ₦500 surcharge.”

Onobun expressed concern that Nigerians are already struggling with multiple economic challenges, including inflation, rising fuel prices, increased electricity tariffs, and excessive banking fees, all of which are reducing disposable income and negatively affecting citizens’ financial well-being.

He warned that “the imposition of additional ATM withdrawal charges will further discourage financial inclusion, especially for low-income earners, contradicting the CBN’s financial inclusion agenda.”

The lawmaker also pointed out that despite the banking sector recording substantial profits, consumers continue to face excessive charges without any significant improvement in service quality or banking infrastructure.

“The government’s role includes protecting citizens from exploitative financial practices that could worsen economic hardship,” he concluded.