SERAP Files Lawsuit Against CBN Over Controversial ATM Fee Increase

The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN), seeking to halt the implementation of what it describes as an unlawful and unreasonable increase in ATM transaction fees.

CBN’s New ATM Fee Policy Sparks Outrage

The CBN recently introduced a revised ATM withdrawal fee structure, stipulating that withdrawals made from machines owned by banks but located outside their branch premises will attract a charge of N100 per N20,000 withdrawn. Additionally, transactions conducted at shopping centers, airports, or standalone cash points will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal.

This decision has sparked significant public backlash, with many Nigerians criticizing the policy as unfairly burdening consumers while benefiting banks.

SERAP Takes Legal Action

In response, SERAP has filed a lawsuit (case number FHC/L/CS/344/2025) at the Federal High Court in Lagos, requesting judicial intervention to prevent the CBN from implementing the revised ATM charges.

SERAP is urging the court to determine whether the CBN’s decision to increase transaction fees aligns with the Federal Competition and Consumer Protection Act 2018 and whether it violates consumer rights.

SERAP’s Arguments Against the Fee Hike

SERAP contends that the ATM fee hike is arbitrary, unfair, and contrary to legal provisions that protect Nigerian consumers. The organization argues that:

• The Nigerian Constitution (1999, as amended), the CBN Act, and the Federal Competition and Consumer Protection Act do not justify the fee increase.
• The new charges discriminate against economically vulnerable Nigerians, creating a financial system that favors the wealthy while further marginalizing the poor.
• The CBN’s decision contradicts its responsibility to ensure fair banking policies that prioritize consumer welfare over excessive bank profits.

Legal Grounds for SERAP’s Lawsuit

SERAP’s case references key legal provisions that bind the CBN, including:

• Section 1(c) & (d) of the Federal Competition and Consumer Protection Act, 2018, which mandates the protection of consumer interests and prohibits unfair business practices.
• Section 104 & 127(1) of the same Act, which prevent regulatory bodies from implementing policies that impose unfair financial burdens on consumers.
• Section 2(1) & 2(2) of the Act, emphasizing that all corporate entities, including government agencies like the CBN, must comply with fair competition laws.

What SERAP is Asking the Court to Do

SERAP is requesting the court to:

1. Declare the CBN’s decision unlawful for being unjust and contrary to existing financial consumer protection laws.
2. Issue an injunction preventing the CBN from implementing the new ATM transaction fees until a final judgment is reached.
3. Invalidate the CBN’s circular dated February 10, 2025, which introduced the fee hike.
4. Restrict the CBN and financial institutions from enforcing the increased charges.

Public Reactions and Economic Impact

The CBN’s decision has been widely criticized, with many Nigerians expressing concerns about the financial strain it places on lower-income individuals. Economic analysts argue that such policy changes should be absorbed by banks and shareholders rather than passed onto the public.

Critics also highlight that banks continue to record substantial profits, and an increase in ATM charges will only worsen financial hardships amid Nigeria’s economic struggles.

Next Steps in the Case

A hearing date for the lawsuit has not yet been scheduled. In the meantime, Nigerians await the court’s decision on whether to halt the implementation of the new fees.

For further updates, you can follow SERAP’s official website.

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