By Tayo Busayo, Abuja
DAILY COURIER - The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding the immediate reversal of the recently announced hike in Automated Teller Machine (ATM) transaction fees.
In an open letter addressed to CBN Governor Olayemi Cardoso, SERAP described the policy as "patently unlawful, unfair, unreasonable, and unjust," emphasizing that it would disproportionately affect economically vulnerable Nigerians. The letter, signed by SERAP’s Deputy Director, Kolawole Oluwadare, called for an urgent review of the policy to prevent additional financial burdens on the populace.
The apex bank had recently announced that, effective March 1, 2025, ATM withdrawals made at off-site machines—those located outside bank branches—would attract a charge of N100 per N20,000 withdrawn. Additionally, withdrawals at shopping centers, airports, and standalone cash points would carry an extra surcharge of up to N500 per transaction.
SERAP strongly condemned the policy, arguing that the fee increase would further impoverish ordinary Nigerians while benefiting commercial banks, which continue to declare massive profits. The organization asserted that the increase in ATM fees should have been absorbed by wealthy banks and their shareholders rather than imposed on the general public.
“The increase only benefits the CBN and commercial banks at the expense of poor Nigerians,” the letter read. SERAP also accused the CBN of failing in its statutory responsibility to protect the financial interests of citizens, stressing that the apex bank should prioritize policies that favor the masses rather than financial institutions that rake in trillions in profits.
Citing legal provisions, SERAP argued that the fee hike contradicts Nigeria’s Constitution, the CBN Act, and the Federal Competition and Consumer Protection Act. It also claimed that the policy violates international human rights obligations, as it creates a two-tiered financial system that discriminates against low-income Nigerians who may struggle to afford the increased charges.
“The exorbitant and unlawful increase in ATM transaction fees at a time when the country is grappling with economic hardship would only worsen poverty levels,” SERAP stated.
The organization warned that if the policy is not reversed within 48 hours, it would initiate legal action against the CBN. “If we do not hear from you, SERAP shall take all appropriate legal actions to compel you and the CBN to comply in the public interest,” it declared.
SERAP further urged the Tinubu administration to ensure that the CBN aligns its policies with national economic priorities rather than those of commercial banks. As public backlash against the new policy mounts, all eyes will be on the CBN to see whether it will reconsider its decision or face a legal battle with SERAP.
