Lagos, Nigeria – February 16, 2025 – 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 withdraw the newly introduced increases in Automated Teller Machine (ATM) transaction fees, describing them as “unlawful, unfair, unreasonable, and unjust.”
The CBN recently announced a new policy mandating a charge of N100 per N20,000 withdrawn from ATMs not located within bank premises. Additional charges of up to N500 per N20,000 will also apply for withdrawals made at shopping centers, airports, or standalone ATMs. These changes are set to take effect on March 1, 2025.
In an open letter dated February 15, 2025, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization criticized the policy, arguing that it would disproportionately impact low-income Nigerians and exacerbate the country’s poverty levels.
“The increase in ATM transaction fees ought to have been borne by wealthy banks and their shareholders, not the general public. This policy only benefits the CBN and commercial banks at the expense of poor Nigerians,” SERAP stated.
The organization further asserted that the fee hike contradicts the Nigerian Constitution, the CBN Act, and the Federal Competition and Consumer Protection Act. SERAP also emphasized Nigeria’s international human rights obligations, arguing that the policy undermines economic justice.
According to SERAP, “The increase creates a two-tiered financial system that discriminates against poor Nigerians who may struggle to afford the additional fees.”
The letter also referenced Section 42(1)(a) of the CBN Act 2007, which mandates the central bank to promote reasonable financial services in the national interest. Additionally, SERAP cited provisions of the Federal Competition and Consumer Protection Act, which prohibits unfair business practices and excessive charges.
“We expect the recommended measures to be taken within 48 hours of receipt and/or publication of this letter. If no action is taken, SERAP will pursue legal avenues to compel compliance in the public interest,” the organization warned.
The CBN has yet to officially respond to SERAP’s demands regarding the new ATM fee structure.
