There is no doubt that many Nigerians are going through difficult times occasioned by unprecedented high cost of living. Even as the cancellation of free ATM withdrawals would impose a fresh and unreasonable financial stress on the people. The unbearable cost of living marked by never-seen inflation, relentless electricity, telecom tariff hikes, and rising fuel prices have pushed many citizens to their wits end. With the crushing economic stress Nigerians are going through, it is only necessary for the Central Bank of Nigeria, CBN, to reverse the cancellation.
It is preposterous that the CBN has imposed new charges on basic transactions, further subjecting customers to excruciating experience. The CBN’s proclivity in levying nuisance taxes on bank customers is disturbing and should be checked. It is on record that the CBN was forced to reverse its directive to banks to impose a Cyber-security Levy of 0.5% on electronic banking transactions after public outcry.
The CBN has revived its surreptitious moves as the three free withdrawals per month allowed to bank customers on other ATMs has also been affected.
What is reasonable in the new directive is that withdrawals from a customer’s bank ATM remain free. However, customers using another bank’s ATM will be charged N100 per N20,000 withdrawal when using ATMs located within bank premises. For withdrawals made at off-site ATMs, N100 per N20,000 withdrawal will apply, along with a surcharge of up to N500.
The CBN stated that the policy is expected to “accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service”, citing rising costs. This postulation is unreasonable and puerile by all standards.
The telecom services tariff has just been raised by 50% although there are agitations in various quarters to reverse the move. Basic transportation for many has become impossible after petrol prices shot up by 500©.
Food has now turned luxury for many., a situation that has worsened our record of having nearly 11.7% of the world’s population in extreme poverty living in Nigeria, per Statista.
Amid this, it is disturbing that banks are already making exceptional profits Nigerians should not be further subjected to additional pains.
Rather than subject the citizens to further grief, the CBN should work assiduously in line with what is practicable to ease our collective burden of the emasculating inflationary trend we are experiencing.
Statistics paint an all right picture of the banking sector as is far from struggling. In the first nine months of 2024, 10 major banks posted a combined pre-tax profit of N4.2 trillion, equal to 15.27% of the 2024 budget and double the N2.07 trillion posted a year earlier.
These humongous figures are derived from high-interest loans and multiple layers of charges on customers. Rather than ensure adequate oversight to protect customers from exploitative practices, the CBN is finding additional ways for banks to make easy money. The CBN’s decision to further squeeze everyday Nigerians with ATM withdrawal fees is insensitive, cruel, and provocative.
Why should customers pay N600 or 3.0% to withdraw N20,000 when banks have pegged daily withdrawal limits at N20,000 and N5,000 for customers and non-customers, respectively?
Many small businesses, including transporters, rely on cash transactions. PoS operators are bound to have a field day with exorbitant charges.
Most ATMs are free in Britain, except the ones deployed by independents. Banks pay a small interchange fee for their customers on other bank ATMs.
The CBN, which is expected sustain customers interest has allowed banks to levy all sorts of fees, including account and card maintenance, in addition to the statutory EMTL and even payment for services such as account statement retrieval. Some Nigerians have migrated to fintech firms to escape extortionate charges and poor services.
With the situation men of means who have access to more advanced financial services and digital payment options, will largely avoid these new fees but not so for the ordinary Nigerian struggling with basic survival.
We urge the National Assembly, the Federal Competition and Consumer Protection Commission and the Nigerian Labour Congress and advocacy groups to take proactive steps to ensure the policy is overturned in the interest of the people.
