The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour deadline to the Central Bank of Nigeria (CBN), demanding that it reverse the newly announced increase in Automated Teller Machine (ATM) withdrawal fees. The organization described the decision as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, SERAP’s Deputy Director, Kolawole Oluwadare, urged CBN Governor Olayemi Cardoso to withdraw the policy, warning that failure to do so would result in legal action. The letter expressed concern that the fee hike would further strain Nigerians, particularly low-income earners, who are already struggling with economic hardship.
The letter, titled “SERAP Gives CBN 48 Hours to Withdraw ‘Unlawful, Unfair’ Hike in ATM Transaction Fees,” noted that the increase goes against Section 42(1)(a) of the CBN Act 2007. This section mandates the apex bank to ensure that financial services are both adequate and reasonable for the public in the national interest.
Additionally, SERAP pointed out that the policy contradicts the Federal Competition and Consumer Protection Act of 2018, which is designed to protect consumers from unfair business practices. The group argued that the fee increase would disproportionately affect those at the lower end of the economy, worsening poverty levels across the country.
The letter further noted, “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.” It warned that imposing excessive fees at a time of economic hardship is discriminatory and creates an unfair financial system that disadvantages those who cannot afford the extra charges.
SERAP also linked the policy to the broader economic challenges in Nigeria, stating that the increase contradicts the Tinubu administration’s pledge to fight poverty. The group accused the CBN of failing to comply with legal frameworks, including the Nigerian Constitution and international human rights obligations.
As part of its demands, SERAP called on the CBN to withdraw the policy within 48 hours of receiving or seeing the letter. The organization made it clear that if the directive is not reversed, it will take legal steps to ensure compliance.
The controversy began when the CBN, in a circular dated February 10, announced that ATM withdrawals from machines outside a bank’s premises would now attract a charge of ₦100 per ₦20,000 withdrawn. Additionally, withdrawals made at shopping malls, airports, and other independent cash points would carry an extra charge of up to ₦500 per ₦20,000.
The new policy is scheduled to take effect on March 1, 2025. However, with SERAP’s strong opposition and threat of legal action, the matter could escalate if the CBN does not reverse its decision within the given timeframe.
