House of Reps Passes Resolution to Suspend CBN’s New ATM Charges

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BY BONNY AMADI

The House of Representatives has passed a resolution urging the Central Bank of Nigeria (CBN) to suspend its recently announced increase in Automated Teller Machine (ATM) transaction charges and the discontinuation of free ATM withdrawals for customers using other banks’ ATMs.

The motion, moved by Marcus Onobun, was adopted following concerns that the new policy would impose additional financial burdens on Nigerians.

The resolution calls on the CBN to halt the implementation of the policy pending further consultations with relevant House committees, including those on banking, finance, and financial institutions.

The lawmakers expressed worries that the new charges would exacerbate the financial strain on citizens already grappling with economic challenges.

The CBN’s circular, issued on February 10, 2025, announced the removal of the three free monthly withdrawals previously allowed for customers using ATMs of banks other than their own.

Under the new policy, customers will now be charged N100 for every N20,000 withdrawn from another bank’s ATM. Additionally, off-site ATMs—those located in shopping malls, eateries, and other public places will impose a surcharge of up to N500 per N20,000, on top of the statutory M100 fee.

The CBN defended the policy, citing rising operational costs and the need to improve the efficiency of ATM services across the country. In its circular, the apex bank stated that the review was aimed at accelerating the deployment of ATMs and ensuring that appropriate charges are applied by financial institutions.

The CBN maintained that the policy is mutually beneficial to both customers and commercial banks.

However, the announcement has sparked widespread criticism from the public and lawmakers, who argue that the new charges will disproportionately affect low-income Nigerians.

Many have expressed concerns that the policy could dis- courage the use of ATMs and push more people towards informal banking methods. During the debate in the House, Onobun emphasised the need for the CBN to engage stake- holders and consider the broader implications of the policy before implementation.