The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN) to reverse the newly imposed hike in Automated Teller Machine (ATM) transaction fees, describing the increase as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, signed by SERAP Deputy Director Kolawole Oluwadare, the organization called on CBN Governor Olayemi Cardoso to immediately withdraw the policy, which SERAP argues will exacerbate financial hardship for Nigerians, especially low-income earners.
The details were outlined in a press release titled “SERAP Gives CBN 48 Hours to Withdraw ‘Unlawful’ ATM Fee Hike” issued on Sunday.
According to a CBN circular dated February 10, 2025, ATM withdrawals made outside a bank’s branch will now incur a N100 charge for every N20,000 withdrawn. Additionally, withdrawals at shopping centers, airports, and standalone cash points will carry an extra surcharge of up to N500 per N20,000 transaction. The new fees are set to take effect on March 1, 2025.
SERAP argued that the fee increase violates Section 42(1)(a) of the CBN Act 2007, which mandates the central bank to ensure “adequate and reasonable financial services for the public.” It also referenced Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which seeks to “protect and promote the interests and welfare of consumers” while prohibiting “restrictive or unfair business practices.”
“The hike in ATM transaction fees will disproportionately affect those at the bottom of the economic ladder, worsening the growing poverty in the country,” SERAP stated. “CBN policies should not favor banks that continue to report trillions of naira in profits at the expense of struggling Nigerians.”
SERAP further emphasized that imposing such fees at a time when many Nigerians are facing economic difficulties is “manifestly unfair, unreasonable, and unjust.” The organization warned that the policy would create a two-tiered financial system, discriminating against vulnerable citizens who may not be able to afford the additional charges.
“The increase contradicts the Tinubu administration’s commitment to alleviating poverty,” SERAP added. “The CBN is failing to comply with both the Nigerian Constitution and its obligations under international human rights law.”
SERAP demanded that the CBN reverse its decision within 48 hours of receiving or seeing the publication of its letter, or face legal action.
“If we do not receive a response within this timeframe, we will take all appropriate legal actions to compel you and the CBN to comply in the public interest,” the letter concluded.
Meanwhile, bank customers have also expressed outrage over the scrapping of free ATM withdrawals, criticizing the rate of the fee hike.
