The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Central Bank of Nigeria (CBN) to immediately suspend the recent hike in automated teller machine (ATM) withdrawal charges pending the outcome of a court ruling on the matter.
In a tweet on X (formerly Twitter) on Sunday, SERAP stated:
“We’ve urged President Tinubu to direct the CBN to immediately suspend the ATM fee hike pending court verdict on the matter. This is entirely consistent with the Nigerian Constitution 1999 [as amended], his oath of office and promises to uphold the rule of law.”
The Central Bank of Nigeria (CBN) recently approved an increase in ATM withdrawal charges, raising concerns among Nigerians about the impact on financial inclusion and access to banking services. Under the new policy, bank customers will be charged higher fees for cash withdrawals from ATMs of other banks—a move that has sparked widespread criticism from consumer advocacy groups and civil society organizations.
Legal Challenge and SERAP’s Position
SERAP, a leading rights organization focused on promoting transparency and accountability, has already filed a lawsuit challenging the fee increase, arguing that it violates the economic rights of Nigerians and places an additional financial burden on already struggling citizens.
- By urging President Tinubu to intervene, SERAP is emphasizing his constitutional duty to protect citizens’ interests and prevent what it describes as an unfair financial policy.
- The organization insists that suspending the fee hike pending the court’s decision is not just a legal necessity but also a demonstration of the administration’s commitment to public welfare.
- The group noted that the increase in ATM fees comes at a time when Nigerians are already dealing with rising inflation, high living costs, and economic instability.
- Many citizens have taken to social media to express frustration over what they perceive as an unjustified policy that further limits their access to cash.
Some financial analysts have also criticized the CBN’s decision, arguing that it contradicts ongoing efforts to promote cashless transactions and enhance banking accessibility. They warn that higher transaction costs could drive more Nigerians towards informal financial systems, reducing the effectiveness of the country’s monetary policies.
More insights
SERAP, last week, filed a lawsuit at the Federal High Court in Lagos, seeking to stop the CBN from implementing the recent increase in Automated Teller Machine (ATM) transaction fees.
- The lawsuit, with suit number FHC/L/CS/344/2025, was filed last Friday at the Federal High Court in Lagos by SERAP’s legal representatives, Kolawole Oluwadare and Andrew Nwankwo.
- On February 11, 2025, CBN announced a revision of automated teller machine (ATM) transaction fees, with the new charges set to take effect from March 1, 2025.
- In a circular signed by John Onojah, acting director of the financial policy and regulation department, the apex bank said the review aligns with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
- The CBN explained that the changes aim to address increasing operational costs and enhance the efficiency of ATM services. It noted that the last review was in 2019, when withdrawal fees were reduced from N65 to N35.
- Under the revised policy, customers withdrawing from their bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.
However, a N100 fee per N20,000 withdrawal will apply at on-site ATMs—those located within bank branches.
For withdrawals at ATMs of other banks (not-on-us transactions), a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal will be charged at off-site locations.
