The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit at the Federal High Court in Lagos, seeking to stop the Central Bank of Nigeria (CBN) from implementing the recent increase in Automated Teller Machine (ATM) transaction fees.
In a statement posted on its official X (formerly Twitter) handle on Sunday, SERAP described the hike in transaction fees as “patently unlawful, unfair, and unjust,” arguing that the new policy disproportionately affects poor Nigerians while benefiting commercial banks and the apex bank.
“We’ve asked the Federal High Court in Lagos to stop the CBN from implementing and enforcing the patently unlawful, unfair, and unjust increase in ATM transaction fees. The increase only benefits the CBN and commercial banks at the expense of poor Nigerians,” SERAP tweeted.
SERAP’s Argument
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. It states in part: “The CBN is compromising its stated mission to advance the management of the country’s economy, and ultimately, sustainable development.”
“The CBN is also failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and the country’s international human rights obligations in the exercise of its statutory powers and functions,” SERAP said.
SERAP is asking the court to determine “whether the decision by the CBN to increase ATM transaction fees is not arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.”
SERAP is asking the court for “a declaration that the decision by the CBN to increase ATM transaction fees is arbitrary, unfair, unreasonable and contrary to the provisions of sections 1(c) and (d), 104, 105 and 127(1) of the Federal Competition and Consumer Protection Act 2018, which is binding on the CBN.”
SERAP is seeking “an order of interim injunction restraining the CBN, its officers, agents, associates or any other persons acting on its directive or instructions from enforcing and giving effect to the decision, pending the hearing and determination of the motion on notice for an order of interlocutory injunction filed in this suit.”
In the suit, SERAP is arguing that: “The increase cannot be justified under the Nigerian Constitution 1999 [as amended], the CBN Act, Federal Competition and Consumer Protection Act, and the country’s international human rights obligations.”
SERAP is also arguing that “The increase creates a two-tiered financial system that discriminates against poor Nigerians who may not be able to afford or pay the increased ATM fees.”
According to SERAP, “The patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically Nigerians.”
Back story
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).
“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria (CBN) has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,” the circular stated.
- 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.
SERAP’s lawsuit comes in response to the CBN’s recent directive permitting banks to increase charges on electronic banking services, including ATM withdrawals. The new policy has sparked public outrage, with many Nigerians expressing frustration over the rising costs of banking transactions in the face of economic hardship.
Under the revised guidelines, banks are now allowed to charge higher fees for interbank ATM withdrawals after a certain number of free transactions. While financial institutions argue that the new charges reflect operational costs, critics insist that the policy burdens already struggling citizens.
