Reps moves to halt CBN’s ATM withdrawal charges

The House of Representatives has passed a resolution urging the Central Bank of Nigeria (CBN) to suspend its recent directive on increased Automated Teller Machine (ATM) transaction charges and the removal of free withdrawals for customers using ATMs of other banks.

The resolution followed a motion of urgent public importance moved by Marcus Onobun, who expressed concern over the financial strain the new policy would place on Nigerians. Lawmakers noted that the policy, if implemented, would worsen economic hardship and called for a proper review before enforcement.

The House directed the CBN to put the policy on hold and engage with the relevant committees on banking, finance, and financial institutions to assess its impact.

On February 10, 2025, the CBN issued a circular announcing the removal of the three free monthly withdrawals previously allowed for customers using ATMs outside their banks. The directive, set to take effect from March 1, 2025, mandates a charge of ₦100 for every ₦20,000 withdrawn at ATMs of other banks.

For off-site ATMs—such as those in shopping malls, restaurants, and public spaces—an additional surcharge of up to ₦500 per ₦20,000 withdrawal will apply, on top of the ₦100 statutory fee.

The apex bank defended the move, citing rising operational costs and the need to enhance ATM efficiency. “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.

Despite criticism from Nigerians, the CBN maintained that the policy would be beneficial to both customers and financial institutions. However, with the House of Representatives stepping in, the fate of the controversial charges now hinges on further deliberations between lawmakers and the apex bank.