INCREASE IN TRANSACTION FEES OF ATMs

Analysis by Kenneth Madueke

Banks and operators of Point of Sale (POS) have commenced implemention of revised charges on Automated Teller Machines(ATMs) despite the controveries that trailed the unpopular decision.
The decision to which takes effect from this week is expected to have unsettling impacts on the disposal incomes of the citizenry and cost of doing business especially given the country’s inflationary trend and its influence on the purchasing power.
The apex bank announced that on-us transaction( that is withdrawals at one’s bank’s ATM) attracts no charge while not-on-us transactions( that is withdrawals at another bank’s ATMs) and Point of sales (POS) will henceforth attract all sorts of charges. While on-site ATM withdrawal attracts N100 per N20,000 Off-site ATMs charges the same fee in addition to a surcharge of N500 in banks.
Nevertheless, if a customer withdraws cash with own ATM card using POS machine, CBN will debit you N400 as well as additional N100 if the transaction is above #10,000. The POS agent will equally charge the customer another cost, making the total sum of over N800 for N20,000 withdrawal.
The forgoing, in the main, explains public outcry against the policy that apparently represents the insensitivity of the Federal Government to the sufferings of the citizens. The issue of minimum wage has remained largely unresolved as many state governments still complain of inability to pay the wage bill.Worse still, Nigerian workers that make up membership of the Nigeria Labour Congress(NLC) and Trade Union Congress(TUC) are less than 30 percent of the nation’s workforce. This means that about 70 percent that work in the nation’s private sector are technically excluded from the newly endorsed national minimum bill.
Given the devaluation of Naira, new tariff increase, removal of subsidy on petroleum products’ prices without adequate palliative measures and their concomitant effects on prices of goods and services in the country, the pockets of many citizens are already depleted. The rashes of inconsistent fiscal and monetary measures that have not stabilized the weak economy, make the hapless workers become glorified beggars in their country . The current charges introduced by the CBN plus the unabating security challenges and hike in food prices will further dry up the disposable incomes of workers. Already, the manufacturing sector of the country is weighed down by the governments’ multiple taxation and other unfavorable polices which inevitably add to high cost of doing business .
This ugly development is perturbing moreso as the government appears insensitive to the worsening economic situation in the country. The despair and frustration of the citizens are glaringly shown on their face and could drive some to depression and their early death where hey have to spend almost 10 per cent of their hard+ earned incomes on ATM and POS transaction costs every month. How can an average worker that earns less than N150,000 a month with a family of three kids and wife or/ husband cope with the current economic suffocating policy? The fact is that many people use POS for their withdrawals as banks’ branches and ATMs are either not available or are malfunctioning.How would this policy help to deepen CBN’s cashless when our internet and telecommunication costs remain prohibition?
We are therefore, calling on the government to take a second look at the unfair ATM transaction costs and reverse same There are other creative ways the Federal government through the CBN can collect revenues without milking already dried cows that represent many users of ATMs in the country.