Suspend Hike in ATM Transaction Charges, Reps Tell CBN

The House of Representatives has urged the Central Bank of Nigeria (CBN) to suspend the recent increase in Automated Teller Machine (ATM) transaction charges, citing concerns over its impact on Nigerians already struggling with rising inflation and economic hardship. Lawmakers argued that the hike in fees would place an additional financial burden on citizens who rely on ATM withdrawals for daily transactions.

The resolution followed deliberations on the economic implications of higher banking charges, with lawmakers emphasizing the need to protect consumers from excessive fees imposed by financial institutions. They noted that many Nigerians, especially those in rural areas with limited access to banking services, depend on ATMs as their primary means of withdrawing cash. Increasing transaction charges, they said, would further widen the financial inclusion gap and make banking services less accessible.

Members of the House called on the CBN to engage with stakeholders, including commercial banks and consumer rights groups, to reassess the policy and explore alternative measures that would not disproportionately affect low-income earners. Lawmakers also highlighted the need for greater transparency in bank charges, urging regulators to ensure that customers are not subjected to arbitrary fees.

In response, the CBN is expected to review the concerns raised by the legislators and provide clarity on the rationale behind the fee adjustments. While the apex bank has defended the move as necessary for maintaining financial stability and improving banking infrastructure, critics argue that such hikes should be implemented gradually and with adequate consumer protection measures in place.

As discussions continue, the House of Representatives has reaffirmed its commitment to advocating for policies that prioritize the welfare of Nigerians, warning that the cost of banking services must remain fair and reasonable, especially in challenging economic times.