SERAP Gives CBN 48-Hour Ultimatum To Reverse ATM Transaction Fees Hike Or Face Legal Action

The Socio-Economic Rights and Accountability Project has described the new hike in Automated Teller Machine transaction fees announced by the Central Bank of Nigeria (CBN) as unlawful, unfair, unreasonable, and unjust.

Naija News reports that the apex bank, in a circular issued on February 10, 2025, imposed ₦100 charges on cash withdrawals from Automated Teller Machines (ATMs) of banks other than the customers’ own while withdrawals at shopping centres, airports, and standalone cash points will carry an additional surcharge of up to N500 per ₦20,000 withdrawal.

The directive takes effect March 1, 2025.

In a statement issued on Sunday by SERAP Deputy Director, Kolawole Oluwadare, the organisation urged CBN Governor, Olayemi Cardoso, to reverse the policy immediately.

The organisation argued that it would worsen the financial hardship faced by Nigerians, particularly low-income earners.

SERAP contended that the increase 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 in the national interest.

It also cited 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 and prohibits restrictive or unfair business practices.

The release titled, “SERAP gives CBN 48 hours to withdraw ‘unlawful, unfair hike in ATM transaction”, read, “The increase in ATM transaction fees is also entirely inconsistent with the oft-expressed commitment by the government of President Bola Tinubu to address the growing poverty across the country.

“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.

“The exorbitant and unlawful increase in ATM transaction fees at a time the country is facing economic and financial crises would contribute further to the impoverishment of the population.

“Imposing exorbitant ATM transaction fees on socially and economically vulnerable Nigerians at a time several Nigerian banks are declaring trillions of naira in profits yearly is manifestly unfair, unreasonable and unjust.

“The increase cannot be justified under the Nigerian Constitution 1999 [as amended], the CBN Act, Federal Competition and Consumer Protection Act, and the country’s international human rights obligations.

“The patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically Nigerians.

“The increase creates a two-tiered financial system that discriminates against poor Nigerians who may not be able to afford or pay the increased fees.

“While the government of President Tinubu has primary responsibility for protecting the rights of Nigerians, the CBN also has the responsibilities to ensure that its practices and guidelines do not cause or contribute to human rights abuses.”

“The CBN could play an important role in promoting economic opportunities for Nigerians where the majority of the people live in poverty.

“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act and the country’s international human rights obligations in the exercise of its statutory powers and functions.

“The CBN is also compromising its stated mission to advance the management of the country’s economy, and ultimately, sustainable development.

“According to our information, the CBN through a Circular to all banks and other financial institutions dated February 10 2025 stated that it has reviewed and increased the ATM transaction fees prescribed in section 10(7) of the CBN Guide to Charges by Bank, Other Financial and Non-Bank Financial Institutions 2020.

“Section 42(1)(a) of the CBN Act 2007 provides that ‘The Bank shall wherever necessary seek the co-operation of and co-operate with other banks in Nigeria to – (a) promote and maintain adequate and reasonable financial service for the public.’ It also provides that any policy of the CBN ‘shall be in the national interest.’”