|ByAdejumo Adekunle –
- Rights group threatens legal action if CBN fails to comply
- Says policy worsens financial hardship, contradicts consumer protection laws
- Describes new charges as discriminatory, favouring banks over citizens
The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN) to rescind its recent increase in Automated Teller Machine (ATM) transaction fees, describing it as unlawful, unfair, unreasonable, and unjust.
In an open letter dated February 15, 2025, SERAP’s Deputy Director, Kolawole Oluwadare, urged CBN Governor Olayemi Cardoso to immediately withdraw the directive, warning that failure to do so would prompt legal action.
SERAP argued that the policy exacerbates economic hardship, especially for low-income Nigerians, and violates Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to provide “adequate and reasonable financial services for the public” in the national interest.
The rights group also referenced Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which seeks to protect consumer rights and prevent exploitative business practices.
According to SERAP, the new ATM fee structure disproportionately affects vulnerable citizens and deepens poverty. The group criticized the policy for benefiting banks—many of which continue to report massive profits—at the expense of struggling Nigerians.
“CBN policies should not be tilted against poor Nigerians while banks rake in trillions in profit,” the letter stated, adding that the decision contradicts President Bola Tinubu’s pledge to tackle poverty.
SERAP further accused the CBN of violating Nigeria’s Constitution, consumer protection laws, and international human rights obligations. It demanded that the central bank reverse the directive within 48 hours of receiving or publishing the letter.
“If we do not receive a response by then, we shall take all necessary legal steps to ensure compliance in the public interest,” SERAP warned.
CBN’s controversial directive, issued via a circular on February 10, mandates that ATM withdrawals outside bank premises will now attract a ₦100 fee per ₦20,000, while withdrawals from shopping malls, airports, and stand-alone ATMs will incur an additional surcharge of up to ₦500 per ₦20,000. The policy is set to take effect on March 1, 2025.
