House of Reps Urges CBN to Suspend ATM Transaction Charge Hike Amid Economic Strain

The House of Representatives has called for the suspension of the recent hike in Automated Teller Machine (ATM) transaction charges by the Central Bank of Nigeria (CBN), citing the country’s challenging economic conditions. The motion was raised by Marcus Onobun, the lawmaker representing Esan Central/Esan West/Igueben Federal Constituency in Edo State, during Tuesday’s plenary session. The motion received overwhelming support from lawmakers who voiced concerns over the financial strain on Nigerians.

Onobun highlighted that the CBN’s new policy, which introduced a charge of N100 for every N20,000 withdrawn from an ATM outside of a customer’s bank network, will disproportionately affect Nigerians, especially low-income earners. Under the policy, customers using their bank’s ATMs will continue to benefit from free withdrawals, while others will incur additional fees, including a N500 surcharge for transactions made in public spaces such as malls or markets.

The legislator pointed out that many Nigerians are already grappling with multiple economic challenges such as inflation, rising fuel prices, and increased electricity tariffs. Onobun emphasized that adding extra charges on ATM transactions could further worsen financial inclusion, as it may discourage people, particularly those in lower income brackets, from utilizing banking services.

Following a voice vote, the Speaker of the House, Tajudeen Abbas, directed that the CBN suspend the implementation of the policy. The suspension is to remain in effect until the CBN engages in further consultations with relevant committees in charge of banking, finance, and financial institutions. The lawmakers argued that the CBN’s move was unjustifiable given the banking sector’s ongoing profitability and the lack of improvements in service delivery and infrastructure.

SOURCE: PUNCH