The House of Representatives has passed a resolution urging the suspension of increased Automated Teller Machine (ATM) transaction charges and the discontinuation of free ATM withdrawals for customers of other banks in Nigeria.
This followed a motion of urgent public importance moved by Marcus Onobun, who highlighted a circular from the Central Bank of Nigeria (CBN) regarding the policy.
Lawmakers expressed concern that the changes would place additional financial strain on Nigerians.
The House called on the CBN to suspend the policy until proper consultations are held with relevant committees on banking, finance, and financial institutions.
On February 10, 2025, the apex bank announced that charges would apply anytime customers use the ATMs of banks other than theirs.
“The three free monthly withdrawals allowed for remote-on-us (other bank’s customers/not-on-us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” the bank said in a circular to financial institutions.
The CBN directed banks and other financial institutions to apply the following charges with effect from March 1, 2025.
The apex bank said while customers withdrawing at the ATMs of their banks and financial institutions won’t be charged, customers withdrawing from the ATM of other banks would now be charged ₦100 per every ₦20,000.
The CBN said for off-site ATMs — automated teller machines not on a bank’s premises – like those at shopping malls, eateries and other public places — a surcharge of not more than ₦500 per every ₦20,000 will apply in addition to the statutory ₦100 fee for withdrawals by customers of other banks’ ATMs.
The apex bank attributed the reviewed charges to rising costs and the need to improve the efficiency of ATM services in the country.
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service,” the circular stated.
Criticisms have trailed the new policy but the apex bank insisted that its policy is mutually beneficial to customers and commercial banks.