The Socio-Economic Rights and Accountability Project (SERAP) has called for the immediate reversal of the Central Bank of Nigeria’s (CBN) newly announced hike in Automated Teller Machine (ATM) transaction fees, Eko Hot Blog reports.
In an open letter dated February 15, 2025, SERAP Deputy Director Kolawole Oluwadare urged CBN Governor Olayemi Cardoso to withdraw the policy within 48 hours, deeming it “unlawful, unfair, unreasonable, and unjust.”
SERAP argued that the increased ATM fees would disproportionately affect low-income earners and exacerbate the financial hardship faced by many Nigerians.
Details of this letter were issued in a press release titled, “SERAP gives CBN 48 hours to withdraw ‘unlawful, unfair hike in ATM transaction,” on Sunday.
According to SERAP, the CBN’s policy, effective March 1, 2025, violates both the CBN Act 2007 and the Federal Competition and Consumer Protection Act, 2018.
Citing Section 42(1)(a) of the CBN Act 2007, SERAP emphasized the apex bank’s responsibility to ensure “adequate and reasonable financial services for the public” in the national interest.
Additionally, Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018 aims to “protect and promote the interests and welfare of consumers” while prohibiting “restrictive or unfair business practices.”
According to the CBN circular released on February 10, 2025, ATM withdrawals outside bank branch premises will incur a N100 charge for every N20,000 withdrawn, while withdrawals at shopping centers, airports, and standalone cash points will carry an additional surcharge of up to N500 for every N20,000 withdrawn.
“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.
“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 organisation argued that imposing exorbitant fees at a time when many Nigerians are struggling economically is “manifestly unfair, unreasonable, and unjust.” It warned that the policy creates a two-tiered financial system, discriminating against economically vulnerable citizens who may not afford the extra charges.
“The increase in fees contradicts the Tinubu administration’s commitment to addressing poverty,” SERAP said.
“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights obligations.”
SERAP demanded that the CBN reverse the decision within 48 hours of the receipt and/or publication of its letter or face legal action.
“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.
Meanwhile, bank customers also kicked as CBN scrapped free ATM withdrawals, decrying the rate of increase.
