The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) 48 hours to reverse the recent increase in Automated Teller Machine (ATM) transaction fees, describing it as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, and signed by its Deputy Director, Kolawole Oluwadare, SERAP urged CBN Governor Olayemi Cardoso to immediately revoke the policy, warning that it would exacerbate the financial hardship faced by Nigerians, particularly those with lower incomes.
Titled ‘SERAP Gives CBN 48 Hours to Withdraw Unlawful, Unfair ATM Fee Hike,’ the letter argues that the policy contradicts Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to ensure “adequate and reasonable financial services for the public.” It also references Section 1(c)(d) of the Federal Competition and Consumer Protection Act 2018, which aims to safeguard consumer interests and prevent unfair business practices.
SERAP criticized the fee increase, stating that it disproportionately affects economically vulnerable Nigerians, pushing many further into poverty. The group argued that CBN policies should not prioritize banks, many of which continue to declare massive profits at the expense of struggling citizens.
The organization further stated that the policy contradicts President Bola Tinubu’s administration’s commitment to poverty alleviation and violates Nigeria’s constitutional, consumer protection, and international human rights obligations.
SERAP demanded that the CBN reverse the decision within 48 hours of receiving the letter or face legal action.
“If we do not receive a response within the stipulated time, we will take all necessary legal steps to compel compliance in the public interest,” the letter warned.
The controversy follows the CBN’s circular dated February 10, announcing that ATM withdrawals made outside bank premises will now attract a charge of ₦100 per ₦20,000 withdrawn, while transactions at shopping malls, airports, and stand-alone cash points will incur additional fees of up to ₦500 per ₦20,000. The directive is set to take effect on March 1, 2025.