The Nigerian House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend its recent directive increasing Automated Teller Machine (ATM) withdrawal charges.
The lawmakers expressed concern that the additional charges would impose further financial burdens on Nigerians already facing economic hardships.
The CBN’s new policy removes the previous provision allowing three free monthly withdrawals for customers using other banks’ ATMs. Under the revised guidelines, customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals.
However, a fee of N100 per N20,000 withdrawal will be applied to customers from other banks transacting from ATMs within bank premises. Similarly, customers from other banks using ATMs outside bank premises—such as those in malls, marketplaces, and other public places—will be charged N100 plus an additional surcharge of N500.
During the House session, lawmakers highlighted that Nigerians are already grappling with multiple economic challenges, including high inflation, increased fuel prices, and electricity tariff hikes.
They argued that the increased ATM withdrawal charges could further limit financial inclusion by discouraging low-income earners from accessing banking services, thereby contradicting the CBN’s financial inclusion agenda.
The House has urged the CBN to halt the implementation of the increased ATM charges pending proper engagement with relevant committees of the House.
The CBN has 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 aims to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions.
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 discourage the use of ATMs and push more people towards informal banking methods.
