SERAP Issues 48-Hour Ultimatum to CBN Over ATM Fee Hike
The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) a 48-hour ultimatum to reverse the recently announced increase in Automated Teller Machine (ATM) transaction fees, describing it as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, SERAP Deputy Director Kolawole Oluwadare urged CBN Governor Olayemi Cardoso to immediately revoke the policy, warning that it would exacerbate financial hardships for Nigerians, particularly low-income earners.
Legal and Economic Concerns Raised by SERAP
The letter, titled ‘SERAP gives CBN 48 hours to withdraw unlawful, unfair hike in ATM transactions,’ argues that the increase violates Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to ensure adequate and reasonable financial services for the public.
Additionally, SERAP cited Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which aims to protect consumer interests and prohibit restrictive or unfair business practices.
According to SERAP, the ATM fee hike disproportionately affects economically vulnerable citizens, worsening poverty and financial exclusion.
Criticism of CBN’s Policy Direction
SERAP criticized the CBN’s policies for favoring commercial banks that continue to declare massive profits, while burdening ordinary Nigerians.
“CBN policies should not be skewed against poor Nigerians in favor of banks that rake in trillions of naira in profits at the expense of their customers,” the letter stated.
The rights group also accused the CBN of failing to align with the Nigerian Constitution, consumer protection laws, and international human rights obligations, adding that the increase contradicts President Tinubu’s administration’s pledge to alleviate poverty.
SERAP Threatens Legal Action
SERAP demanded that the CBN withdraw the directive within 48 hours of receiving or publishing the letter.
“If we do not receive a response within the given timeframe, we will take all necessary legal actions to compel you and the CBN to comply in the public interest,” SERAP warned.
Breakdown of CBN’s ATM Fee Hike
In a circular dated February 10, 2025, the CBN announced new withdrawal charges, effective March 1, 2025:
- N100 fee per N20,000 withdrawal at ATMs outside a bank’s branch premises.
- Up to N500 surcharge per N20,000 withdrawal at shopping centers, airports, and stand-alone cash points.
The directive has sparked widespread backlash, with critics arguing that it places an unnecessary financial burden on already struggling Nigerians.