The Socio-Economic Rights and Accountability Project (SERAP) on Saturday called on the Central Bank of Nigeria (CBN) to immediately reverse the newly announced hike in ATM transaction fees.
In an statement signed by its Deputy Director, Kolawole Oluwadare, SERAP described the new charges as unlawful, unfair, unreasonable, and unjust, urging CBN Governor Olayemi Cardoso to withdraw the policy within 48 hours.
According to the CBN’s circular issued on February 10, 2025, ATM withdrawals at machines outside a bank’s branch will now attract a charge of N100 per N20,000 withdrawn. Withdrawals at shopping centres, airports, and standalone cash points will incur an additional surcharge of up to N500 per N20,000 withdrawn. The directive takes effect from 1 March 2025.
SERAP argued that the policy would worsen financial hardship for Nigerians, particularly low-income earners.
“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,” the organisation 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.”
SERAP cited Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to ensure “adequate and reasonable financial services for the public” in the national interest.
It also referenced Section 1(c)(d) of the Federal Competition and Consumer Protection Act 2018, which seeks to “protect and promote the interests and welfare of consumers” and prohibits “restrictive or unfair business practices”.
“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights obligations,” the organisation said.
“Imposing exorbitant fees at a time when many Nigerians are struggling economically is manifestly unfair, unreasonable, and unjust.”
SERAP warned that the policy creates a two-tiered financial system, discriminating against economically vulnerable citizens who may not afford the extra charges.
“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,” SERAP said.
Meanwhile, bank customers have criticised the removal of free ATM withdrawals, expressing concerns over the rising cost of banking services.
“The increase in fees contradicts the Tinubu administration’s commitment to addressing poverty,” SERAP said.
The organisation has given the CBN 48 hours from the receipt or publication of its letter to reverse the decision or face legal action.
