SERAP Threatens Lawsuit Over ATM Fee Hike

The Socio-Economic Rights and Accountability Project (SERAP) has threatened to sue the Central Bank of Nigeria (CBN) if it does not withdraw the increase in Automated Teller Machine (ATM) transaction fees within 48 hours.

SERAP, which made the threat in an open letter dated February 15, 2025, signed by SERAP’s deputy director Kolawole Oluwadare, addressed to the CBN governor, Olayemi Cardoso, described the increase as “patently unlawful, unfair, unreasonable, and unjust.”

The civil society organisation also insisted that the apex bank has a duty to exercise its statutory powers and functions without inflicting hardship on poor Nigerians or contributing to human rights abuses.

It further stated that the manifestly unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees will primarily affect those at the bottom of the economic ladder and worsen the rising poverty in the country.

SERAP maintained that wealthy banks and their shareholders should bear the burden of increasing ATM transaction fees, not the general public because the increase benefits the CBN and commercial banks at the expense of poor Nigerians.

The organisation also stressed that CBN policies should not be skewed against poor Nigerians or heavily favour banks that continually report trillions of naira in profits, often at the expense of their customers.
SERAP emphasised that the increase is inconsistent with President Bola Tinubu’s government’s commitment to address the growing poverty nationwide.

It further demanded that the proposed measures be implemented within 48 hours of receiving or publishing the letter. Failure to respond within that timeframe will lead SERAP to pursue all appropriate legal actions to compel compliance by the CBN in the public interest.

SERAP stated, “The exorbitant and unlawful increase in ATM transaction fees, occurring during a period of economic and financial crisis, will further impoverish the population.

“Imposing these excessive fees on socially and economically vulnerable Nigerians while several banks declare trillions of naira in annual profits is manifestly unfair, unreasonable, and unjust.
“The increase cannot be justified under the Nigerian Constitution of 1999 (as amended), the CBN Act, the Federal Competition and Consumer Protection Act, or the country’s international human rights obligations.

“The unjustifiable increase in ATM fees contributes to violations of the human rights of vulnerable Nigerians.

“This increase creates a two-tiered financial system that discriminates against poor Nigerians who may struggle to afford the increased fees.

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

“The CBN could play a vital role in promoting economic opportunities for Nigerians, given that most 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 as it exercises its statutory powers and functions.

“The CBN is also undermining its stated mission to advance the management of the country’s economy and ultimately foster 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 Banks, Other Financial and Non-Bank Financial Institutions 2020.

“Section 42(1)(a) of the CBN Act 2007 stipulates that ‘The bank shall, wherever necessary, seek the cooperation of and cooperate with other banks in Nigeria to (a) promote and maintain adequate and reasonable financial services for the public.’ It also asserts that any CBN policy ‘shall be in the national interest.”

“Section 1(c) and (d) of the Federal Competition and Consumer Protection Act, 2018 highlights that the objectives of the Act are to ‘protect and promote the interests and welfare of consumers’ and ‘prohibit restrictive or unfair business practices’ such as the exorbitant and unreasonable increase in ATM transaction fees,” SERAP stated.