The Nigerian House of Representatives has formally requested the Central Bank of Nigeria (CBN) to halt the implementation of its recent policy increasing charges on Automated Teller Machine (ATM) transactions. This call stems from concerns over the policy’s potential to exacerbate the existing economic hardships faced by Nigerians, who are already grappling with high inflation, escalating fuel prices, and increased electricity tariffs. The House’s resolution followed a motion of urgent public importance presented by Representative Marcus Onobun, arguing that the increased charges create an undue burden on citizens and contradict the CBN’s own financial inclusion goals. The motion received overwhelming support from lawmakers, emphasizing the widespread concern regarding this policy. The House has directed the CBN to suspend the implementation until proper consultations are conducted with relevant legislative committees specializing in banking and finance.
The core of the House’s argument centers on the financial strain the new ATM charges place on Nigerians, especially those with lower incomes. The previous policy allowed for free interbank ATM withdrawals, a crucial facility for many. The new policy, however, introduces a fee of N100 for every N20,000 withdrawn from another bank’s ATM located within the bank’s premises. Furthermore, withdrawals from ATMs situated outside bank premises, such as in malls and markets, will incur a N100 charge plus an additional surcharge of N500. These added costs are deemed excessive and counterproductive to the CBN’s stated objective of promoting financial inclusion.
The timing of the policy is also questioned, given the prevailing economic climate. Nigeria is currently experiencing a period of high inflation, impacting the cost of essential goods and services. Coupled with recent increases in fuel prices and electricity tariffs, the added ATM charges represent another financial burden on citizens struggling to make ends meet. The House argues that these cumulative increases significantly erode disposable income and negatively impact the overall welfare of Nigerians. Imposing further charges for banking services, without corresponding improvements in service quality or infrastructure, is considered unreasonable and unjustified, especially given the significant profits reported by the banking sector.
Representative Onobun, in his motion, emphasized the contradiction between the new ATM policy and the CBN’s financial inclusion agenda. By increasing the cost of accessing banking services, the policy discourages low-income earners from utilizing formal banking channels. This could push them towards informal and potentially less secure financial systems, counteracting the CBN’s efforts to integrate more Nigerians into the formal banking sector. This concern is echoed by the House, highlighting the potential for financial exclusion, a detrimental consequence in a developing economy.
The House’s resolution to suspend the implementation underscores the importance of proper consultation and legislative oversight in policy-making. By calling for engagement with relevant committees, specifically the Committees on Banking, Finance, and Financial Institutions, the House asserts its role in scrutinizing policies that impact the financial well-being of Nigerians. This ensures that such policies are thoroughly reviewed, debated, and potentially revised to align with the broader economic interests of the country. The move signals a commitment to transparency and accountability in financial policy decisions.
The strong support for the motion within the House of Representatives indicates a shared concern about the potential negative impacts of the increased ATM charges. This bipartisan agreement adds significant weight to the call for suspension, highlighting the urgency of addressing the issue. The House’s intervention reflects its responsibility to represent the interests of the Nigerian people and to act as a check on policies that could exacerbate economic hardship. The next step lies with the CBN, which is expected to respond to the House’s resolution and engage in the requested consultations. This interaction between the legislative and regulatory bodies will play a crucial role in determining the future of the ATM charge policy.
