The House of Representatives (House of Reps) passed a resolution in response to a motion of urgent public interest that calls for the suspension of free ATM withdrawals for Nigerian clients of other banks as well as the reduction of fees associated with ATM transactions.
Recall that in February, the CBN directed banks and other financial institutions to apply new ATM charges with effect
from March 1, 2025.
Marcus Onobun, a member, moved the motion, which brought the House’s attention to a circular issued by the Central
Bank of Nigeria.
Lawmakers were concerned that this would put Nigerians under further financial strain.
In order to properly engage with the relevant banking, finance, and financial institution committees, the House
requested that the CBN halt the policy.
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.
With effect from March 1, 2025, the CBN ordered banks and other financial institutions to implement the following fees.
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Customers who withdraw from the ATMs of their banks and other financial institutions will not be charged, according
to the apex bank, but those who withdraw from ATMs of other banks will now be charged ₦100 for 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.
