House of Reps orders CBN to stop implementation of ATM withdrawal charges

• The House of Representatives has ordered the Central Bank of Nigeria to suspend the implementation of the N100 Automated Teller Machine transaction charge
• It suspended the implementation of the policy pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions
• The House said the new policy would impose an additional burden on Nigerians given the current economic situation

The House of Representatives has called on the Central Bank of Nigeria (CBN) to suspend the implementation of the Automated Teller Machine (ATM) transaction charges.

The decision followed the adoption of a motion of urgent public importance sponsored by the member representing Esan Central/Esan West/Igueben Federal Constituency, Edo State, Marcus Onobun, during plenary on Tuesday, March 11.

Onobun argued that the new policy on charges for ATM transactions poses additional financial burden on Nigerians given the economic situation in the country, and called for the policy to be halted.

In his address on the floor of the House, Onobun noted that the apex bank, through a recent circular, prescribed an increase in ATM withdrawal charges and a discontinuation of the free ATM withdrawals for customers using other banks’ ATMs.

“The House is disturbed that the citizens of Nigeria are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hike, and numerous banking and service charges that significantly reduce disposable income and negatively impact the economic welfare of citizens.

“The House is worried that the 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.

“The House is cognisant of the fact that the banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.

“The House notes that the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress,” he said.

House urges CBN to suspend new ATM withdrawal policy

The Speaker of the House of Representatives, Tajudeen Abbas, who presided over the plenary session, put the motion to voice vote and it was supported by the lawmakers.

The House thereafter urged the CBN to immediately suspend the implementation of the policy, pending proper engagement with the relevant Committees on Banking, Finance, and Financial Institutions.

CBN eliminated free withdrawals from another bank’s ATM

Recall that the CBN, in a circular dated February 10, 2025, announced the elimination of three free monthly withdrawals from another bank’s ATM, revising ATM transaction fees.

With the revised fee structure, withdrawals from one’s bank ATMs will remain free of charge. However, customers using ATMs of other banks will be subjected to a charge of N100 per withdrawal of N20,000 or less at on-site ATMs, which are located within or directly affiliated with a bank branch.

Off-site ATMs, which are positioned outside bank premises such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction. For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.

Banks have already begun implementing the policy, which took effect on March 1.

Cardoso says new ATM fee to make cash withdrawal seamless

Meanwhile, TheRadar earlier reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the newly revised Automated Teller Machine (ATM) cash withdrawal fee would make for seamless service and ensure cash availability.

Cardoso noted that the policy, which was part of short-, medium-, and long-term solutions devised to prevent the cash scarcity witnessed during the yuletide, aims to prevent the exploitation of bank customers by cash merchants.