Nigerian Lawmakers Push Back Against CBN’s ATM Fee Hike

Nigeria’s House of Representatives has instructed the Central Bank of Nigeria (CBN) to suspend its planned Automated Teller Machine (ATM) fee increase. This directive, issued during Tuesday’s plenary, was prompted by a motion of urgent public interest brought forward by Honourable Marcus Onobun, representing the Esan Central/Esan West/Igueben Federal Constituency in Edo State.

According to Onobun, the CBN had recently issued a circular announcing higher ATM withdrawal fees and an end to free withdrawals for customers using ATMs operated by other banks. The lawmaker expressed concern that such a move would exacerbate the financial struggles of Nigerians already grappling with economic difficulties, including soaring inflation, rising fuel costs, increased electricity tariffs, and numerous banking charges that chip away at their disposable income.

The policy, however, does not affect free withdrawals made from a customer’s own bank’s ATMs. Instead, it targets users of other banks’ ATMs, imposing a fee of ₦100 for every ₦20,000 withdrawn. An additional charge of ₦500 applies if the withdrawal is made at locations outside the bank’s premises, such as shopping centres, marketplaces, or other public areas.

“We are worried that 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 noted.

He further emphasised that despite recording significant profits, the banking sector continues to impose additional charges on consumers without corresponding improvements in service quality or infrastructure.

The House of Representatives, led by Speaker Tajudeen Abbas, who conducted the plenary session, unanimously backed the motion through a voice vote. The decision now puts pressure on the CBN to reconsider its controversial fee hike policy.

As Nigerians await the CBN’s response, many wonder whether the banking regulator will yield to the legislators’ demand or proceed with its planned adjustments.