The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to suspend the planned increase in Automated Teller Machine (ATM) transaction fees pending the outcome of a lawsuit currently before the Federal High Court in Lagos.
The lawsuit was filed by SERAP to challenge the legality of the proposed increase at a time when many Nigerians are grappling with other economic challenges and several increases from electricity to telecommunications and others.
In an open letter released over the weekend and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the group argued that implementing the increased ATM fees while the case is still pending would amount to a mockery of the judicial process and the rule of law.
The organization then explained that suspending the increase would align with the Nigerian Constitution of 1999 (as amended) and President Tinubu’s oft-repeated promises to uphold the rule of law.
“The CBN has a responsibility to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices do not make nonsense of the rule of law or the court,” the statement read. “The implementation of the increased ATM fees would not only disregard the ongoing judicial process but also place undue financial strain on ordinary Nigerians already grappling with economic challenges.”
The controversy stems from a recent announcement by the CBN that ATM withdrawals made at a machine owned by a bank but outside its branch premises would now attract a charge of N100 per N20,000 withdrawn.
Also, ATM withdrawals at shopping centres, airports, or standalone cash points would incur a N100 fee plus a surcharge of up to N500.
The apex bank has instructed financial institutions to implement the new fees starting from March 1, 2025.
SERAP, in its letter, contended that the CBN should maintain the status quo as of February 26, 2025, when the court processes were duly served, arguing that any action to proceed with the fee hike would constitute an act of self-help and undermine the court’s authority.
“Once the CBN has been duly served with the court processes, the bank cannot resort to self-help. The CBN is not permitted to take any action that would overreach the public interest or foist a situation of complete helplessness or ‘fait accompli’ on the Federal High Court,” SERAP stated.
The organization also warned that the increased ATM fees would disproportionately affect low-income Nigerians, many of whom rely heavily on ATM withdrawals for their daily transactions.
“For many Nigerians, the ATM is not a convenience but a necessity. The increased fees, if implemented, would further exacerbate financial exclusion and widen the gap between the rich and the poor,” Oluwadare said.
Legal analysts have suggested that the Federal High Court’s decision could set a precedent for financial regulation in Nigeria, particularly regarding consumer protection and the transparency of fee structures imposed by banks.
“If the court rules in favour of SERAP, it could compel the CBN to adopt a more consultative and transparent approach to setting transaction fees,” a Lagos-based legal expert told Investors King.
