The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding the reversal of the recent increase in Automated Teller Machine (ATM) transaction fees.
The advocacy group insists that the new charges are “unlawful, unfair, unreasonable, and unjust,” particularly for economically vulnerable Nigerians.
In a statement posted on its official X (formerly Twitter) handle on Sunday, SERAP called on the apex bank to rescind the decision within 48 hours, warning that failure to comply would result in legal action.
“We’ve given the Central Bank of Nigeria [CBN] 48 hours to reverse the patently unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees, or face legal action. The charges will hit hardest those at the bottom of the economy,” the group stated.
Public Outcry Over Rising Banking Costs
The recent decision by the CBN to increase ATM withdrawal fees has sparked outrage among Nigerians, particularly low-income earners who rely heavily on cash transactions. Critics argue that the additional charges will further burden citizens already grappling with high inflation and economic hardship.
Many bank customers have taken to social media to express their frustration, lamenting that the higher fees erode their limited financial resources.
SERAP has consistently taken legal action against government institutions over policies perceived as anti-people. The group has indicated that it is prepared to approach the courts if the CBN fails to reverse the ATM fee increase within the stipulated timeframe.
Legal analysts suggest that SERAP could challenge the policy on grounds of consumer rights protection, economic justice, and financial inclusion, arguing that the new fees disproportionately affect low-income Nigerians.
CBN’s Position and Policy Justification
The CBN is yet to respond to SERAP’s ultimatum, but financial analysts believe that the regulatory body may justify the increase as part of efforts to align banking fees with market realities. However, critics argue that the move contradicts the CBN’s commitment to promoting financial inclusion and easing banking transactions for the average Nigerian.
Recall that CBN announced a major revision to its ATM transaction fees, effectively eliminating the three free monthly withdrawals previously granted to customers using other banks’ ATMs last week.
According to the circular, the CBN has reviewed the ATM transaction fees stipulated under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). The key changes include:
- On-Us transactions (same bank’s ATM): Customers withdrawing from their own bank’s ATM will continue to enjoy free withdrawals.
- Not-On-Us transactions (other banks’ ATMs):
- On-site ATMs (within bank premises): A fee of N100 per N20,000 withdrawal will apply.
- Off-site ATMs (outside bank premises): A fee of N100 per N20,000 withdrawal, plus an additional surcharge of up to N500, will be charged.
- International withdrawals: The charge will be based on the exact amount imposed by the international acquirer.
