The House of Representatives calls for the suspension of the new ATM transaction charge increase, citing the economic burden on Nigerians

[dropcap]T[/dropcap]he House of Representatives has called on the Central Bank of Nigeria (CBN) to immediately suspend the implementation of the increased Automated Teller Machine (ATM) transaction charges, in light of the current economic challenges facing the country.

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The decision was reached following the adoption of a motion of urgent public importance, sponsored by Mr. Marcus Onobun, the representative for Esan Central/Esan West/Igueben Federal Constituency in Edo State, during Tuesday’s plenary session.

Onobun, who addressed his colleagues in the House, expressed concerns over the recent CBN circular that introduced a hike in ATM withdrawal charges and the discontinuation of free ATM withdrawals for customers using ATMs from other banks.

According to the new policy, customers withdrawing funds from their bank’s ATM would continue to enjoy free withdrawals.

However, customers using ATMs from other banks will incur a charge of N100 for every N20,000 withdrawn within the bank premises.

Additionally, customers transacting at ATMs outside the bank premises, such as those in malls or markets, will face a charge of N100 plus a N500 surcharge.

Onobun pointed out that this new policy imposes additional financial burdens on Nigerians already grappling with multiple economic challenges, including high inflation, increased fuel prices, rising electricity tariffs, and numerous banking and service charges.

He warned that this would further reduce disposable income and negatively affect the welfare of Nigerians.

The lawmaker also noted that the policy could undermine financial inclusion efforts in the country, as it may discourage low-income earners from accessing banking services.

Onobun highlighted that while the banking sector has been recording significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure is unjustifiable.

Speaker Tajudeen Abbas, who presided over the plenary session, called for a voice vote, and the motion was overwhelmingly supported by lawmakers.

Following the vote, the House of Representatives urged the CBN to immediately suspend the implementation of the policy.

They also called for proper engagement with the relevant committees on Banking, Finance, and Financial Institutions to address the concerns raised by lawmakers.

This development has sparked discussions about the broader implications of the new ATM charges on Nigerians, especially in light of the country’s challenging economic climate.

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The suspension of the policy is expected to provide time for further scrutiny and engagement between the CBN and key stakeholders in the banking sector.