CBN Under Fire: SERAP Threatens Legal Action Over ATM Fee Hike

The Socio-Economic Rights and Accountability Project (SERAP) has condemned the recent hike in Automated Teller Machine (ATM) transaction fees introduced by the Central Bank of Nigeria (CBN), calling it unlawful, unfair, unreasonable, and unjust.....KINDLY READ THE FULL STORY HERE▶

In a circular issued on February 10, 2025, the CBN imposed a ₦100 charge on cash withdrawals from ATMs of banks other than the customer’s own. Additionally, withdrawals at shopping centers, airports, and standalone ATMs now carry an extra surcharge of up to ₦500 per ₦20,000 withdrawal.

In a statement on Sunday, SERAP’s Deputy Director, Kolawole Oluwadare, urged CBN Governor Olayemi Cardoso to immediately reverse the policy, warning that it would worsen financial hardship, particularly for low-income Nigerians.

The organization argued that the policy violates Section 42(1)(a) of the CBN Act 2007, which mandates the bank to ensure adequate and reasonable financial services in the national interest. It also cited Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which prohibits unfair and restrictive business practices.

Titled “SERAP Gives CBN 48 Hours to Withdraw ‘Unlawful, Unfair Hike in ATM Transaction Fees’”, the statement read:

“The increase in ATM charges directly contradicts the government’s promise to address growing poverty across the country. If our request is not met within 48 hours, we will take legal action to ensure compliance in the public interest.”

SERAP further criticized the timing of the increase, arguing that at a time when Nigeria is facing economic and financial crises, the move would push more citizens into deeper financial distress.

“It is completely unjust for banks to impose exorbitant ATM fees on vulnerable Nigerians while simultaneously declaring trillions of naira in yearly profits,” SERAP concluded.