SERAP Gives CBN 48-Hour Ultimatum to Reverse ATM Fee Hike

The Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to immediately reverse the newly announced increase in Automated Teller Machine (ATM) transaction fees.

The rights group has given the apex bank a 48-hour ultimatum, threatening legal action if the directive is not withdrawn.

Why SERAP Opposes the Hike

In an open letter dated February 15, 2025, addressed to CBN Governor Olayemi Cardoso, SERAP Deputy Director Kolawole Oluwadare described the policy as “unlawful, unfair, unreasonable, and unjust.”

According to SERAP, the increase:

• Violates Section 42(1)(a) of the CBN Act 2007, which mandates the bank to ensure adequate and reasonable financial services for Nigerians.
• Contradicts Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which protects consumer rights and prohibits unfair business practices.
• Will disproportionately affect low-income earners, increasing financial hardship and widening the poverty gap. “CBN policies should not be skewed against poor Nigerians while banks continue to make trillions in profit at the expense of their customers,” SERAP stated.

Details of the ATM Fee Hike

The CBN, in a circular dated February 10, 2025, announced that:

• ATM withdrawals outside bank premises will now attract a ₦100 charge per ₦20,000 withdrawn.
• Withdrawals at shopping centers, airports, and stand-alone ATMs will incur an extra surcharge of up to ₦500 per ₦20,000 withdrawal.
• The directive is set to take effect from March 1, 2025.

SERAP’s Legal Threat

SERAP has warned that if the CBN does not reverse the policy within 48 hours, the organization will take legal action to compel compliance in the public interest.

“If we do not receive a response from the CBN, we will initiate all appropriate legal steps to challenge this policy,” SERAP declared.

Public Reactions and Concerns

The new charges have sparked widespread criticism, with many Nigerians expressing concerns that the policy will push more people back into bank halls, causing longer queues and delays.

As the deadline approaches, all eyes are on the CBN’s response and whether the apex bank will backtrack on the controversial policy.

What’s Your Take?

Do you support SERAP’s demand for the CBN to reverse the ATM fee hike? Share your thoughts in the comments!