Nigerian lawmakers have taken a firm stance against the Central Bank of Nigeria’s recent decision to increase ATM withdrawal charges, demanding immediate suspension of the policy amid growing concerns about its impact on everyday Nigerians already struggling with economic hardships.
During Tuesday’s plenary session, the House of Representatives formally called for a halt to the implementation of increased charges for customers using ATMs belonging to banks other than their own. The directive came after a motion put forward by Representative Marcus Onobun gained widespread support across the Green Chamber.
According to the CBN’s new circular, which revises Section 10.7 of the Guide to Charges by Banks and Other Financial Institutions, customers withdrawing cash from their own bank’s ATMs would continue to enjoy free service. However, those using ATMs of other banks would face significantly higher fees – a stark departure from the previous policy which had actually reduced such fees from N65 to N35 per transaction when last reviewed in 2019.
Under the new structure, customers using another bank’s ATM located within that bank’s premises would be charged N100 per N20,000 withdrawn. More controversially, those using ATMs of other banks placed in public locations such as malls or marketplaces would face not only the N100 charge but an additional surcharge of N500.
This policy imposes additional financial burdens on Nigerians who are already grappling with multiple economic hardships,” Onobun emphasized during his presentation of the motion. He highlighted the irony that while the banking sector continues to record significant profits, ordinary citizens are being asked to shoulder even more costs without seeing corresponding improvements in service delivery.
The House resolution specifically urged the CBN to “immediately suspend the implementation of this policy, pending proper engagement with the relevant committees on banking, finance, and financial institutions.” This call for consultation suggests lawmakers feel they’ve been sidestepped in a decision with far-reaching consequences for millions of Nigerians.
At the heart of the Representatives’ concern is the apparent contradiction between the CBN’s stated financial inclusion agenda and the practical effect these increased charges would likely have. The lawmakers argued that imposing additional fees would actually discourage low-income earners from accessing banking services, effectively pushing them away from the formal financial system rather than drawing them in.
The timing of the CBN’s policy shift has drawn particular criticism, coming as it does during a period of exceptional economic pressure for average Nigerians. The House pointed to the cumulative burden created by high inflation, increased fuel prices, electricity tariff hikes, and numerous existing banking charges that have already significantly reduced citizens’ disposable income.
Banking analysts note that the previous reduction in ATM fees to N35 in 2019 was widely praised as a consumer-friendly move that acknowledged the essential nature of ATM services in a country where cash remains king for many everyday transactions. The sudden reversal to not only higher but substantially higher fees has therefore caught many by surprise.
Consumer advocacy groups have joined the chorus of criticism, suggesting that the timing of such increases appears particularly tone-deaf given the current economic climate. Some have questioned whether the additional revenue generated would genuinely go toward improving banking infrastructure or merely bolster bank profits.
The Representatives’ intervention reflects growing concern about what many see as the government’s role in protecting citizens from exploitative financial practices that might exacerbate economic distress. Their resolution emphasizes that at a time when many Nigerians are struggling to make ends meet, additional banking fees represent more than just an inconvenience – they constitute a meaningful reduction in household purchasing power.
Financial inclusion experts have noted that convenient and affordable access to cash remains vital in Nigeria’s economy, where digital payments infrastructure is still developing in many regions. Even as the country pushes toward greater digitization of financial services, ATMs continue to serve as a critical bridge between traditional cash economies and modern banking.
The CBN has yet to respond publicly to the House’s demand for suspension of the new policy. However, the central bank typically defends fee adjustments as necessary to maintain banking sector viability and fund infrastructure improvements. Banking industry representatives have previously argued that the cost of maintaining off-site ATMs in particular has risen significantly due to security concerns, power supply challenges, and regular maintenance requirements.
Whether the CBN will heed the lawmakers’ call remains to be seen, but the public pushback against the fee increase highlights the delicate balance regulators must strike between banking sector profitability and protecting consumers during difficult economic times. The controversy also underscores the broader challenge of advancing financial inclusion in ways that don’t inadvertently exclude those most in need of basic banking services.
For now, Nigerians await the outcome of this standoff between their elected representatives and the country’s apex financial regulator, with millions of everyday banking customers hoping for relief from yet another financial burden in already challenging times.
