By DAYO ADESULU
The House of Representatives has urged the Central Bank of Nigeria (CBN) to immediately suspend its new ATM withdrawal charges policy, which imposes additional fees on customers using other banks’ ATMs. The new policy, which came into effect on March 1, 2025, eliminates free ATM withdrawals for interbank transactions and increases fees for cash withdrawals.
CBN ATM Withdrawal Charges Policy Sparks Nationwide Outrage
The House resolution followed a motion sponsored by Rep. Marcus Onobun during plenary in Abuja. Lawmakers criticized the policy, stating that it would further burden Nigerians who are already struggling with economic hardships, inflation, and increased cost of living.
Breakdown of the New CBN ATM Withdrawal Charges Policy
The controversial policy includes the following changes:
- Customers withdrawing from their bank’s ATM will continue to enjoy free withdrawals.
- Customers using another bank’s ATM within bank premises will be charged N100 per N20,000 withdrawal.
- Customers withdrawing from ATMs outside bank premises (e.g., malls, markets, and other public spaces) will be charged N100 plus an additional N500 surcharge.
Lawmakers argue that these new charges are unjustifiable, especially considering that Nigerian banks continue to record significant profits without corresponding improvements in service delivery or financial infrastructure.
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House of Representatives Rejects CBN’s New ATM Withdrawal Charges
During the debate, Rep. Onobun expressed concern that the CBN ATM withdrawal charges policy contradicts the country’s financial inclusion agenda by discouraging low-income earners from using banking services.
Economic Hardship and Increased Financial Burden
Onobun highlighted the impact of the policy on Nigerians, saying:
“The citizens of Nigeria are already grappling with multiple economic hardships, including high inflation, increased fuel prices, electricity tariff hikes, and numerous banking and service charges that significantly reduce disposable income.”
He emphasized that the role of government includes protecting citizens from exploitative financial practices that could lead to further economic distress.
Nigerians React to CBN ATM Withdrawal Charges Policy
Many Nigerians have taken to social media to express their frustration over the policy. Some have called for mass protests, while others have urged the government to rethink the financial burden on ordinary citizens.
Financial analysts also warn that the new policy could lead to a decline in ATM usage and increased reliance on cash transactions, which contradicts the CBN’s cashless policy initiative.
Lawmakers Demand Immediate Suspension and Review
The House of Representatives has referred the matter to the committees on Banking, Finance, and Financial Institutions for further legislative action. Lawmakers have urged the CBN to review and reconsider the policy in light of the economic challenges faced by Nigerians.
Conclusion: Will the CBN Reconsider?
As public outcry grows, all eyes are now on the CBN to determine whether it will retract or amend the ATM withdrawal charges policy. With lawmakers, financial experts, and everyday Nigerians calling for change, the pressure is mounting on the apex bank to prioritize financial inclusion and economic relief.
The Usefulness of ATM Withdrawal Machines
Automated Teller Machines (ATMs) play a crucial role in modern banking, offering convenience, accessibility, and efficiency to customers. One of the primary benefits of ATMs is their ability to provide 24/7 cash withdrawal services, allowing users to access funds anytime without relying on traditional banking hours. This enhances financial flexibility, especially during emergencies.
ATMs also reduce long queues inside bank branches, making transactions faster and more convenient. Many machines offer multi-functional services, including balance inquiries, fund transfers, bill payments, and mobile phone recharges, promoting financial inclusion for both urban and rural users.
Furthermore, ATMs enhance security by reducing the need to carry large amounts of cash, minimizing the risks of theft. With technological advancements, ATMs continue to revolutionize banking, making financial transactions easier, faster, and more efficient.
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