SERAP sues CBN over increased ATM transaction fees
By Uzair Adam
The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) over its recent decision to increase Automated Teller Machine (ATM) transaction fees, calling it “unlawful, unfair, unreasonable, and unjust.”
The CBN recently introduced a new charge of N100 per N20,000 withdrawal from an ATM not located within a bank’s branch premises.
Additionally, withdrawals at shopping centers, airports, and standalone cash points will attract a N100 fee along with a surcharge of up to N500 per N20,000 withdrawal.
In a lawsuit filed at the Federal High Court in Lagos, SERAP is seeking a judicial review of the CBN’s decision, arguing that the policy contradicts the Federal Competition and Consumer Protection Act of 2018.
The organization wants the court to declare the fee hike illegal and issue an injunction preventing its enforcement.
According to SERAP, the increase disproportionately affects low-income Nigerians, creating financial barriers for those who rely on ATMs for daily transactions.
The group further claims that the move violates constitutional provisions, consumer protection laws, and international human rights obligations.
SERAP’s legal team, led by Kolawole Oluwadare and Andrew Nwankwo, asserts that the new charges should be borne by banks and their shareholders rather than being passed onto consumers.
They argue that the CBN is acting in a manner that prioritizes banks’ profits over the welfare of Nigerians, with many banks declaring substantial annual profits.
The lawsuit also challenges the CBN’s authority to unilaterally impose such fees without the consent of the Federal Competition and Consumer Protection Commission (FCCPC). SERAP is urging the court to nullify the CBN’s circular on the fee hike and restrain banks and financial institutions from implementing the charges.
A date for the hearing of the case has not yet been set.