The Nigerian House of Representatives has taken a decisive stance against the Central Bank of Nigeria’s (CBN) recent increase in Automated Teller Machine (ATM) transaction charges. This move comes in response to growing public outcry over the new policy, which introduces fees for ATM withdrawals from other banks’ machines and eliminates free interbank ATM transactions. The House, recognizing the already strained financial situation of many Nigerians, has called for an immediate suspension of the policy pending a thorough review and engagement with relevant committees. This decision underscores the legislature’s concern for the economic well-being of citizens and its commitment to ensuring that financial policies are aligned with the needs of the populace.
The impetus for the House’s intervention was a motion of urgent public importance brought forth by Representative Marcus Onobun, representing Esan Central/Esan West/Igueben Federal Constituency in Edo State. Onobun’s motion highlighted the detrimental impact of the increased ATM charges on Nigerians already struggling with a confluence of economic challenges. He argued that the new charges would further exacerbate the financial burden on citizens facing high inflation, escalating fuel prices, and increased electricity tariffs, among other economic pressures. This, he emphasized, runs counter to the CBN’s stated objective of promoting financial inclusion, as the added costs could deter low-income earners from utilizing banking services.
The CBN’s new policy dictates that while customers can continue to make free withdrawals from their own bank’s ATMs, withdrawals from other banks’ ATMs within the same premises will incur a N100 fee for transactions up to N20,000. Furthermore, using other banks’ ATMs located outside bank premises, such as in malls and marketplaces, will attract a N100 fee plus an additional surcharge of N500. This tiered fee structure represents a significant departure from the previous system, where a certain number of interbank ATM transactions were typically free of charge.
Representative Onobun’s motion resonated strongly with his colleagues in the House, who expressed concerns that the banking sector’s continued profitability did not justify imposing additional charges on customers without corresponding improvements in service quality or infrastructure. The implication is that the increased fees are perceived as an undue burden on consumers, particularly given the absence of tangible benefits in terms of enhanced banking services. This sentiment reflects a broader concern about the fairness and appropriateness of the new charges in the context of the current economic climate.
Following the robust debate, the House, under the leadership of Speaker Tajudeen Abbas, voted overwhelmingly in favor of the motion to suspend the implementation of the increased ATM charges. This decisive action demonstrates the legislature’s willingness to intervene in matters of public concern and to hold the CBN accountable for its policies. The House also mandated that the CBN engage with the Committees on Banking, Finance, and Financial Institutions to thoroughly review the policy and its potential impact on Nigerians.
The House of Representatives’ call for the suspension of the increased ATM charges is a significant development in the ongoing dialogue about the affordability and accessibility of financial services in Nigeria. It underscores the importance of considering the broader economic context when formulating and implementing financial policies, especially those that directly impact the everyday lives of citizens. The subsequent engagement between the CBN and the relevant House committees will be crucial in determining the future of these charges and ensuring that any changes to the existing system are in the best interests of the Nigerian people. This episode highlights the vital role of the legislature in safeguarding the economic well-being of the populace and promoting financial inclusion.
