SERAP gives CBN 48 hours to reverse ATM fee hike

The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to immediately reverse what it describes as a “patently unlawful, unfair, unreasonable, and unjust” increase in Automated Teller Machine (ATM) transaction fees.

The group insists that the CBN’s new charges disproportionately impact economically vulnerable Nigerians and exacerbate financial hardship.

The CBN recently announced a revised fee structure for ATM withdrawals. Under the new policy, withdrawals made from an ATM owned by a bank but located outside its branch premises will attract a charge of N100 per N20,000 withdrawn.

Additionally, ATM withdrawals at shopping centers, airports, or standalone cash points will incur a base charge of N100 plus an extra surcharge of up to N500 per N20,000 transaction. Banks have been instructed to implement the new charges starting March 1, 2025.

In an open letter dated February 15, 2025, and signed by SERAP’s deputy director, Kolawole Oluwadare, the organization criticized the decision, arguing that it unfairly burdens the most economically disadvantaged members of society.

“The manifestly unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country,” SERAP stated.

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According to the organization, the cost of ATM fees should be borne by wealthy banks and their shareholders rather than being transferred to the general public. It accused the CBN of implementing policies that favor commercial banks—many of which have declared record profits—at the expense of struggling citizens.

“CBN policies should not be skewed against poor Nigerians while heavily favoring banks that continue to declare trillions of naira in profits mostly at the expense of their customers. The increase in ATM transaction fees will inflict misery on poor Nigerians and contribute to human rights abuses,” SERAP asserted.

The organization further argued that the fee hike contradicts the commitments made by President Bola Tinubu’s administration to address widespread poverty in the country.

“The increase in ATM transaction fees is also entirely inconsistent with the oft-expressed commitment by the government of President Bola Tinubu to address the growing poverty across the country,” the letter read.

SERAP has urged the CBN to withdraw the increase within 48 hours of receiving or publishing the letter. It warned that if no action is taken, the organization would pursue legal avenues to compel the CBN to comply in the interest of the public.

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“The exorbitant and unlawful increase in ATM transaction fees at a time when the country is facing economic and financial crises would contribute further to the impoverishment of the population,” SERAP warned.

“It is manifestly unfair, unreasonable, and unjust to impose exorbitant ATM transaction fees on socially and economically vulnerable Nigerians at a time when several Nigerian banks are declaring trillions of naira in profits yearly,” the letter continued.

SERAP also pointed out that the fee increase is inconsistent with the Nigerian Constitution, the CBN Act, the Federal Competition and Consumer Protection Act, and international human rights obligations. It argues that the hike creates a two-tiered financial system that discriminates against poor Nigerians who may struggle to afford the additional charges.

“While the government of President Tinubu has primary responsibility for protecting the rights of Nigerians, the CBN also has the responsibility to ensure that its practices and guidelines do not cause or contribute to human rights abuses,” SERAP stated.

“The CBN could play an important role in promoting economic opportunities for Nigerians, especially considering that a majority of the population lives in poverty,” the organization added.

SERAP accused the CBN of failing to comply with constitutional and regulatory requirements in exercising its statutory powers. It also argued that the policy undermines the institution’s mandate to manage the country’s economy effectively and promote sustainable development.

As the deadline set by SERAP approaches, Nigerians await the CBN’s response and whether the central bank will reconsider its decision on the controversial ATM transaction fee hike.