…Threatens Legal Action
The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) a 48-hour ultimatum to reverse the recent increase in Automated Teller Machine (ATM) transaction fees, calling it “unlawful, unfair, unreasonable, and unjust.”
In an open letter addressed to the CBN Governor Olayemi Cardoso and dated February 15, 2025, SERAP urged him to reconsider the policy to prevent further financial strain on Nigerians.
The human rights organisation insisted that the CBN must ensure its policies do not contribute to economic hardship or human rights violations.
It had been earlier reported that the CBN introduced new Automated Teller Machine (ATM) transaction fees for banks and financial institutions, effective from March 1, 2025.
According to the CBN in a statement signed by John S. Onojah, its Acting Director, Financial Policy and Regulation Department, the move aims to enhance efficiency and increase the deployment of ATMs across the country.
The new CBN directive mandates that ATM withdrawals made at machines outside bank branches will now attract a charge of N100 per N20,000 withdrawn.
Also, transactions at shopping centres, airports, and standalone ATMs will incur an extra surcharge of up to N500 per N20,000. Banks have been instructed to implement these increased charges starting March 1, 2025.
But SERAP Deputy Director Kolawole Oluwadare, who signed the letter, warned that the policy would disproportionately affect low-income earners, exacerbating poverty and economic inequality.
“The increase in ATM transaction fees ought to have been absorbed by wealthy banks and their shareholders, not imposed on the general public.
“This policy benefits only the CBN and commercial banks at the expense of struggling Nigerians,” part of the letter stated.
SERAP argued that the fee hike contradicts the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights commitments.
The organisation contends that the policy is exploitative and reinforces economic disparities, effectively creating a two-tiered financial system that discriminates against lower-income individuals.
The letter also called on the CBN to uphold its responsibility to advance economic opportunities for Nigerians rather than imposing financial burdens that contribute to widespread hardship.
“At a time when banks are declaring trillions of naira in profits annually, this increase is manifestly unfair, unreasonable, and unjust,” SERAP said.
SERAP also cited the United Nations Guiding Principles on Business and Human Rights, emphasising that the CBN must conduct human rights due diligence to prevent policies that contribute to economic disenfranchisement.
The organisation warned that failure to withdraw the policy within 48 hours would prompt legal action to compel compliance.
