February ,23 2025
In accordance with it 48 hours ultimatum to central bank of Nigeria, CBN, to reverse the new hike in ATM withdrawal rates or risk being dragged to court, the Socio-Economic Rights and Accountability Project, SERAP, has made good the threat and has filed a lawsuit against the apex bank.
The suit, filed at the Federal High Court in Lagos under case number FHC/L/CS/344/2025, challenges the CBN’s directive, which imposes a N100 charge per N20,000 withdrawn from ATMs located outside bank branches, with additional surcharges of up to N500 for withdrawals at shopping centres, airports, and standalone cash points.
SERAP argues that the fee hike is “unlawful, unfair, unreasonable, and unjust” and seeks a court order to stop its implementation
SERAP is asking the court to determine whether the CBN’s decision is in violation of the Federal Competition and Consumer Protection Act 2018 as well as seeking a declaration that the fee hike is contrary to sections 1(c) and (d), 104, 105, and 127(1) of the Act, which mandate the protection of consumer rights and prohibit unfair business practices.
The organization, argued 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.”
It also claims that the new charges “inherently contribute to violations of the human rights of socially and economically vulnerable Nigerians” and calls on the court to issue an interim injunction restraining the CBN and financial institutions from enforcing the new fees until the case is decided.
SERAP further contends that ATM fee burden should be placed on banks rather than consumers.
“The increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public,” it stated.
The suit was filed by SERAP’s legal team, Kolawole Oluwadare and Andrew Nwankwo, who argue that the CBN’s action undermines consumer protection laws and goes against its stated mission to promote economic stability and development.
No date has been fixed for the hearing of the interim application and the substantive suit.
The CBN, had through a Circular to all banks and other financial institutions dated February 10 2025 stated that it has reviewed and increased the ATM transaction fees prescribed in section 10(7) of the CBN Guide to Charges by Bank, Other Financial and Non-Bank Financial Institutions 2020.
