The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding an immediate reversal of the newly introduced increase in Automated Teller Machine (ATM) transaction fees.

In an open letter dated February 15, 2025, SERAP's Deputy Director, Kolawole Oluwadare, urged CBN Governor Olayemi Cardoso to reconsider the decision, emphasizing that the move would exacerbate financial hardship for millions of Nigerians, especially low-income earners.

CBN’s ATM Fee Hike Sparks Outrage

The letter, titled “SERAP Gives CBN 48 Hours to Withdraw ‘Unlawful, Unfair’ Hike in ATM Transaction Fees”, argues that the increase violates Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to ensure “adequate and reasonable financial services for the public.”

Additionally, SERAP referenced Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which prohibits restrictive or unfair business practices while protecting consumer interests and welfare.

Impact on Nigerians and Growing Poverty

SERAP expressed deep concern that the increased ATM fees will disproportionately affect those at the bottom of the economic ladder, worsening the already high poverty levels in the country. The organization criticized the CBN for prioritizing the interests of banks, which continue to post massive profits, over the well-being of Nigerian citizens.

“In a period of economic struggles, imposing exorbitant ATM charges is unjust, unreasonable, and unfair,” the letter stated. “This policy effectively creates a two-tiered financial system that discriminates against the economically vulnerable.”

SERAP further argued that the policy contradicts President Bola Tinubu’s administration’s commitment to tackling poverty and improving the economic condition of Nigerians.

SERAP’s Legal Threat to CBN

The rights group warned that the CBN’s decision violates the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights obligations.

SERAP has demanded that the CBN reverse the policy within 48 hours of receiving and/or publishing its letter. If the demand is not met, the organization vowed to take legal action to compel the central bank to act in the public’s interest.

“If we do not receive a response within 48 hours, we shall pursue all necessary legal measures to ensure compliance,” SERAP warned.

CBN’s New ATM Withdrawal Charges Explained

According to a circular issued by the CBN on February 10, 2025, ATM withdrawals from machines outside a bank’s branch will now attract a N100 fee per N20,000 withdrawn. Withdrawals made at shopping malls, airports, and stand-alone ATMs will carry an additional surcharge of up to N500 per N20,000 withdrawal. The new directive is set to take effect from March 1, 2025.

With mounting public backlash, all eyes are now on the CBN to see whether it will reconsider its decision or face legal action from SERAP.