Order CBN To Suspend ATM Fee Hike Pending Court Ruling, SERAP Tells Tinubu

Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to instruct the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to suspend the recently introduced increase in Automated Teller Machine (ATM) transaction fees until a Federal High Court in Lagos rules on its legality.

The group also urged Tinubu to consult the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), on whether the CBN has a legal obligation to uphold the rule of law by pausing the implementation of the fee hike while the lawsuit is ongoing.

SERAP had last month taken the CBN to court over what it described as an “unlawful, unfair, and unjust” increase in ATM fees.

The policy mandates a charge of N100 per N20,000 withdrawn from an ATM owned by a bank but located outside its branch premises. Withdrawals at shopping centres, airports, or standalone ATMs attract an additional surcharge of up to N500.

In an open letter dated 1 March 2025 and signed by its deputy director, Kolawole Oluwadare, SERAP emphasised the need for the CBN to hold off on implementing the policy until the court determines the case.

“Directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit,” SERAP stated.

The organisation argued that enforcing the new charges while the case is pending would “make a mockery of the judicial process and the rule of law.”

“The CBN is bound to suspend the increase in ATM transaction fees and await the outcome of the lawsuit,” it added.

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SERAP further stated: “The CBN has the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do not make nonsense of the rule of law or the Court.”

It insisted that the bank must maintain the status quo as of 26 February 2025, when the court processes were served on it, and refrain from any action that could undermine the ongoing legal proceedings.

“The CBN is not permitted to do or take any action or omission that would overreach the public interest or foist a situation of complete helplessness or ‘fait accompli’ on the Federal High Court,” SERAP warned.

The organisation highlighted the potential consequences of the CBN’s action, stating that “Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending a strong signal that they are not being used as mere subterfuge to tie the hands of one party while the other helps himself extra-judicially.”

SERAP stressed that proceeding with the fee increase despite a pending lawsuit could undermine the credibility of the judicial system and encourage other government agencies to disregard legal proceedings.

“The credibility and relevance of the judicial system risk being undermined, potentially encouraging other ministries, departments and agencies [MDAs] to adopt dismissive attitudes toward pending cases in court,” it stated.

The lawsuit, filed on 21 February 2025 with case number FHC/L/CS/344/2025, challenges the CBN’s decision on ATM fees and questions whether it is “arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.”

SERAP referenced President Tinubu’s past promises to uphold the rule of law, reminding him of his inaugural speech where he pledged that “Nigeria will be impartially governed according to the Constitution and the rule of law.”

The organisation reiterated that judicial independence must be safeguarded, stating: “The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them on the basis of facts and in accordance with the law, without any improper interference, direct or indirect.”

It further cited legal provisions backing its position, including Section 8(1) of the Central Bank of Nigeria Act and Section 6 of the Nigerian Constitution, which vests judicial powers in the courts.

SERAP urged Tinubu to act swiftly to prevent any breach of the rule of law and ensure that the CBN complies with due process while awaiting the court’s decision.