The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over the increase in Automated Teller Machine (ATM) transaction fees. The group argues that the new charges are unfair, unreasonable, and in violation of consumer protection laws.
The CBN recently announced a new policy stating that ATM withdrawals made at a bank’s machine outside its branch premises will now attract a fee of N100 per N20,000 withdrawn. Additionally, withdrawals from ATMs located at shopping malls, airports, or other standalone cash points will incur an extra surcharge of up to N500 per N20,000 withdrawal.
In response, SERAP filed suit number FHC/L/CS/344/2025 at the Federal High Court in Lagos last Friday, challenging the legality of the fee increase. The organization is asking the court to determine whether the CBN’s decision violates the Federal Competition and Consumer Protection Act of 2018. SERAP is also seeking an order to stop the implementation of the charges while the case is being heard.
The lawsuit argues that the fee increase creates a financial system that unfairly targets lower-income Nigerians, making banking services more expensive for those who can least afford them. SERAP notes that the CBN’s action contradicts the country’s constitution, the CBN Act, and international human rights obligations.
According to SERAP, “The patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically vulnerable Nigerians.”
The legal filing, prepared by SERAP’s lawyers Kolawole Oluwadare and Andrew Nwankwo, states that the CBN’s decision undermines its duty to manage the country’s economy in a way that benefits all citizens. SERAP also notes that banks are already making large profits, and the cost of ATM services should not be transferred to consumers.
“The increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public,” the lawsuit states.
SERAP is requesting the court to declare the fee increase unlawful and to order the CBN to reverse it. The organization is also asking the court to prevent banks and financial institutions from enforcing the new charges.
The suit references sections of the Federal Competition and Consumer Protection Act, which prohibit businesses from imposing unfair fees on consumers. SERAP argues that the CBN, as a financial regulator, must comply with these laws and ensure fair banking practices.
