The House of Representatives directed the Central Bank of Nigeria to immediately suspend the implementation of increased ATM transaction charges and the removal of free ATM withdrawals for customers using other banks’ ATMs, as outlined in a recent circular by the apex bank.
Thee House of Representatives, in a motion of urgent public importance, sponsored by Marcus Onobun (PDP, Edo) on Monday, called for the suspension of the policy pending proper engagement with relevant House committees.
Onobun, while presenting the motion, highlighted that the CBN recently issued a circular revising ATM transaction fees under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial, and Non-Bank Financial Institutions.
The revision increases withdrawal charges and removes free ATM transactions for customers using other banks, raising concerns about additional financial burdens on Nigerians.
He explained that the new directive raises ATM withdrawal charges and removes free withdrawals for customers using other banks’ ATMs, adding to the financial strain on Nigerians.
He noted that Section 10.7 of the CBN Guide was last reviewed in 2019, when ATM transaction fees were reduced from ₦65 to ₦35 per transaction.
He said “according to this new policy, customers withdrawing from their Bank’s ATMs will continue to enjoy free withdrawals. However, a fee of N100 per N20,000 withdrawals will be applied to customers from other Banks transacting from ATMs within the Bank premises.
“Similarly, Customers from other Banks transacting from ATM outside the premises of the Bank (Malls, Market places, and other public places) will be charged N100 and an additional surcharge of N500.
“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 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.”
Onobun further stated that despite the banking sector’s continued profitability, imposing additional charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.
Onobun emphasized that the government’s role includes protecting citizens from exploitative financial practices that could worsen economic hardship.
It was previously reported that the CBN had announced on February 10, 2025, the elimination of the three free monthly withdrawals previously allowed for customers using other banks’ ATMs.
Under the new policy, customers withdrawing from their own bank’s ATMs would continue to enjoy free withdrawals.
However, a fee of ₦100 per ₦20,000 withdrawal would be applied to customers from other banks transacting from ATMs within the bank premises.
Similarly, customers from other banks transacting from ATMs outside the premises of the bank (such as malls, marketplaces, and other public places) would be charged ₦100 and an additional surcharge of up to ₦500.
