Reverse ATM Fee Hike or Face Legal Action – SERAP Warns CBN
The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding an immediate reversal of the recent increase in Automated Teller Machine (ATM) transaction fees.
Describing the policy as “unlawful, unfair, unreasonable, and unjust,” SERAP stated that the hike would further strain Nigerians, especially low-income earners.
In a letter dated February 15, 2025, and signed by its Deputy Director, Kolawole Oluwadare, the organisation urged CBN Governor Olayemi Cardoso to withdraw the directive.
“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 warned.
CBN’s circular, issued on February 10, 2025, stipulates that withdrawals from ATMs outside a bank’s premises will now attract a N100 charge per N20,000.
Additionally, transactions conducted at shopping centres, airports, and standalone ATMs will incur an extra surcharge of up to N500 per N20,000 withdrawal.
The new charges are set to take effect from March 1, 2025.
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SERAP argued that the move contradicts Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to provide “adequate and reasonable financial services for the public” in the national interest.
It also cited the Federal Competition and Consumer Protection Act, 2018, which aims to “protect and promote the interests and welfare of consumers” while prohibiting “restrictive or unfair business practices.”
“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 stated.
It described the increase as “manifestly unfair, unreasonable, and unjust,” stressing that it contradicts President Bola Tinubu’s administration’s commitment to reducing poverty.
“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights obligations,” it added.
SERAP insisted that the CBN must reverse the decision within 48 hours of receiving or publishing its letter.
“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, customers have expressed outrage over the decision, criticising the CBN for scrapping free ATM withdrawals and increasing financial burdens.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
