The Socio-Economic Rights and Accountability Project (SERAP), demanded that the Central Bank of Nigeria (CBN), reverse its recently announced hike in Automated Teller Machine (ATM) transaction fees, labeling the move as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, signed by SERAP Deputy Director Kolawale Oluwadare, the organization urged CBN Governor Olayemi Cardoso to immediately withdraw the policy.
SERAP argued that the fee increase would exacerbate the financial hardship already plaguing Nigerians, particularly those from low-income backgrounds.
The letter, outlined in a press release titled, “SERAP Gives CBN 48 Hours to Reverse ‘Unlawful, Unfair Hike in ATM Transaction Fees,” was issued on Sunday, February 15, 2025.
SERAP stressed that the policy would harm vulnerable citizens and further entrench poverty across the country.
As per a CBN circular dated February 10, 2025, ATM withdrawals at machines outside a bank’s branch will now incur a charge of N100 per N20,000 withdrawn.
Withdrawals made at shopping centers, airports, and standalone cash points will face an additional surcharge of up to N500 per N20,000.
The new fees are set to take effect on March 1, 2025.
SERAP contends that the fee hike is in direct violation of Section 42(1)(a) of the CBN Act 2007, which mandates that the central bank ensure “adequate and reasonable financial services for the public” in the national interest.
Furthermore, the organization cited Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which aims to “protect and promote the interests and welfare of consumers” while prohibiting “restrictive or unfair business practices.”
“The increase in ATM transaction fees will disproportionately impact those at the bottom of the economic ladder and worsen the growing poverty in the country,” SERAP stated.
“CBN policies should not favor banks that report billions in profits at the expense of their customers, especially poor Nigerians,” SERAP continued.
The organization described the fee hike as “manifestly unfair” and warned that it would create a two-tiered financial system, disadvantaging economically vulnerable citizens who cannot afford the extra charges.
“The increase in fees goes against the Tinubu administration’s commitment to tackling poverty,” SERAP added.
“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and its international human rights obligations.”
SERAP has given the CBN a 48-hour deadline to reverse the decision, warning that legal action will follow if the request is not honored.
“If we do not hear from you by then, we shall take all appropriate legal actions to compel you and the CBN to comply in the public interest,” the letter concluded.
In the wake of the CBN’s decision, bank customers have also expressed outrage, criticizing the removal of free ATM withdrawals and the steep increase in transaction fees
