The House of Representatives has adopted a resolution urging the Central Bank of Nigeria (CBN) to pause its planned increase in Automated Teller Machine (ATM) transaction fees and the elimination of free withdrawals for customers using ATMs of banks other than their own. The decision followed a motion of urgent public importance raised by Representative Marcus Onobun, who highlighted a recent CBN circular announcing the policy shift. Lawmakers expressed concern that the changes would place an undue financial strain on Nigerians and called for the CBN to halt implementation until thorough consultations with the House committees on banking, finance, and financial institutions could occur.

On February 10, 2025, the CBN issued a circular stating that, effective March 1, 2025, customers using ATMs of banks other than their own would face new charges. The circular eliminated the previous allowance of three free monthly “remote-on-us” withdrawals (transactions at another bank’s ATM), as outlined in Section 10.6.2 of the CBN’s Guide to Charges. Under the new rules, withdrawals at a customer’s own bank’s ATM remain free, but using another bank’s ATM will incur a fee of ₦100 per ₦20,000 withdrawn. For off-site ATMs—those located outside bank premises, such as in malls or eateries—an additional surcharge of up to ₦500 per ₦20,000 will apply on top of the standard ₦100 fee for cross-bank withdrawals.

The CBN justified the adjustments by citing escalating operational costs and the goal of enhancing ATM service efficiency nationwide. “This review aims to boost ATM deployment and ensure financial institutions apply suitable charges for these services,” the circular explained. Despite the bank’s stance that the policy benefits both customers and banks, it has sparked widespread criticism. Nonetheless, the CBN maintains that the changes are necessary and advantageous in the long term.

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