Good News for Nigerians as Reps Directs CBN to Suspend New ATM Charges
- The CBN has been requested by the House of Representatives to halt the rise in transaction fees for ATMs
- This followed the CBN's announcement that the transaction fees for ATMs would be reviewed
- The lawmakers said Nigerians already face a lot of financial challenges, including inflation and rising electricity price
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The House of Representatives has requested that the Central Bank of Nigeria (CBN) halt the rise in transaction fees for automated teller machines (ATMs).
Source: Getty Images
Following the adoption of a motion presented by Edo State legislator Marcus Onobun, the resolution was carried during Tuesday's plenary.
The CBN said in February that the transaction fees for ATMs would be reviewed higher, starting on March 1.
According to the regulator, the action will improve efficiency in the banking industry and handle growing operational costs.
Customers who make on-us withdrawals from their bank's ATMs will still be eligible for free withdrawals under the new arrangement.
However, at on-site ATMs (those found at bank premises), there will be a N100 fee for every N20,000 withdrawal.
An off-site withdrawal would incur a cost of N100 plus a levy of up to N450 per N20,000 withdrawal for withdrawals made at other banks' ATMs (not-on-us transactions).
The CBN noted that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal”.
The CBN lowered the withdrawal costs from N65 to N35 in 2019, which was the last time ATM transaction fees were examined.
While the latest increase means Nigerians will pay more for ATM transactions, the apex bank said the review was in line with Section 10.7 of the “CBN guide to charges by banks and other financial and non-bank financial institutions (2020)”.
More charges limit financial inclusion, HoRs insists
Onobun, who moved the motion, claimed that Nigerians will face more financial hardships as a result of the rise in ATM transactions.
According to the lawmakers, Nigerians are already facing several financial difficulties, such as high energy and gas prices and inflation.
He said customers are also facing “numerous banking and service charges that significantly reduce disposable income and negatively impact the economic welfare of citizens”.
“Imposition of additional ATM withdrawal charges will further limit the financial inclusion of Nigerians by discouraging low-income earners from accessing banking services, thereby contradicting the CBN’s financial inclusion agenda,” he said.
“The banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.”
Source: Getty Images
The legislator added that the government needs to protect citizens from “exploitative financial practices that may lead to further economic distress”.
Speaker of the House Tajudeen Abbas called for a voice vote, and the motion was unanimously approved.
Nigerian banks send message to customers
Legit.ng reported that Nigerian banks have begun informing their customers about new Automated Teller Machines (ATMs) charges, which took effect from March 1, 2025.
Legit.ng reported that the Central Bank of Nigeria (CBN) has revised charges on withdrawals from ATMs across Nigeria.
The new changes end the three free withdrawals a month that customers previously enjoyed.
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Source: Legit.ng
