The Socio-Economic Rights and Accountability Project (SERAP) wants President Bola Tinubu to instruct the Central Bank of Nigeria (CBN) to suspend the increase of Automated Teller Machine (ATM) transaction fees until a pending lawsuit is resolved.
The lawsuit, filed at the Federal High Court in Lagos, challenges the legality of the fee hike, which SERAP describes as “patently unlawful, unfair, and unjust.”
In February 2025, the Central Bank of Nigeria (CBN) announced a revision of ATM transaction fees, effective from March 1, 2025. Under the new policy, ATM withdrawals at off-premises machines will incur a charge of N100 per N20,000 withdrawn, with additional surcharges of up to N500 for withdrawals at shopping centers, airports, or standalone cash points. This decision has sparked widespread criticism, with many arguing that it disproportionately affects poor Nigerians and benefits commercial banks and the CBN.
SERAP: ATM fee hike is arbitrary
In February 2025, the CBN announced a revision of ATM transaction fees, effective from March 1, 2025. Under the new policy, ATM withdrawals at off-premises machines will incur a charge of N100 per N20,000 withdrawn, with additional surcharges of up to N500 for withdrawals at shopping centers, airports, or standalone cash points. This decision has sparked widespread criticism, with many arguing that it disproportionately affects poor Nigerians and benefits commercial banks and the CBN.
SERAP filed a lawsuit against the CBN, arguing that the fee hike is arbitrary, unfair, and unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018. The lawsuit seeks a declaration that the CBN’s decision is unlawful and an order to set aside the circular implementing the new fees. SERAP also requested an interim injunction to prevent the enforcement of the increased fees pending the court’s decision.
“We’ve asked the Federal High Court in Lagos to stop the CBN from implementing and enforcing the patently unlawful, unfair, and unjust increase in ATM transaction fees,” SERAP states.
In an open letter to President Tinubu, SERAP urged him to direct the CBN to suspend the fee hike until the lawsuit is resolved. This move, according to SERAP, would allow the Federal High Court to hear and determine the case on its merits, consistent with the rule of law and the Nigerian Constitution.
According to SERAP, “implementing the increased ATM fees while the lawsuit on the matter is pending before the Federal High Court would make a mockery of the judicial process and the rule of law.”Â
It explains that suspending the fee hike is in the public interest, as it would uphold the integrity of the judicial process and ensure that the CBN does not undermine the court’s authority.Â
The organisation also highlighted that once the CBN has been served with court processes, it cannot resort to self-help by implementing the fees without awaiting the court’s decision.
The increased ATM fees have significant economic implications, particularly for low-income individuals who may struggle to afford these additional charges. Critics argue that the burden of these fees should be borne by banks rather than consumers, as it disproportionately affects vulnerable populations.
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