The Socio-Economic Rights and Accountability Project has issued a 48-hour ultimatum to the Central Bank of Nigeria to revoke the recent increase in Automated Teller Machine transaction fees.
The organisation described the new charges as “unlawful, unfair, unreasonable, and unjust,” warning that failure to comply could lead to legal action.
In a letter dated February 15, 2025, and signed by its Deputy Director, Kolawole Oluwadare, SERAP urged CBN Governor Olayemi Cardoso to reconsider the decision, stating that it would worsen financial hardship for many Nigerians, particularly low-income earners.
The group’s concerns were further detailed in a press statement titled “SERAP Gives CBN 48 Hours to Withdraw ‘Unlawful, Unfair’ Hike in ATM Transaction Fees,” released on Sunday.
According to a circular issued by the CBN on February 10, 2025, withdrawals from ATMs located outside bank premises will now attract a charge of N100 per N20,000 withdrawn.
Additionally, withdrawals made at shopping malls, airports, and other standalone cash points will incur extra surcharges of up to N500 per N20,000. The new policy is set to take effect on March 1, 2025.
SERAP argued that the fee hike contradicts Section 42(1)(a) of the CBN Act 2007, which mandates the bank to provide “adequate and reasonable financial services for the public” in the national interest.
The organisation also cited Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which aims to safeguard consumer rights and prevent unfair business practices.
“The increase in ATM transaction fees will hit the hardest those at the bottom of the economy and exacerbate the growing poverty in the country,” SERAP stated.
The organisation accused the CBN of implementing policies that favor banks, which continue to record massive profits, at the expense of everyday Nigerians.
“CBN policies should not be skewed against poor Nigerians and in favour of banks that continue to declare trillions of naira in profits at the expense of their customers,” the group added.
Many Nigerians have expressed frustration over the policy, particularly the removal of free ATM withdrawals. Customers fear the additional charges will further strain their finances at a time when the cost of living remains high.
“The increase in fees contradicts the Tinubu administration’s commitment to addressing poverty,” SERAP stated, emphasizing that the move discriminates against economically vulnerable citizens who cannot afford the extra charges.
The organisation has given the CBN 48 hours to reverse the decision or face legal consequences.
“If we have not heard 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.
