SERAP Sues CBN to Halt ATM Fee Hike, Citing Unfair Burden on Nigerians

The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) over the recent increase in Automated Teller Machine (ATM) transaction fees.

The organization filed a lawsuit at the Federal High Court in Lagos, seeking to prevent the implementation of what it describes as an unjust policy that disproportionately affects economically disadvantaged Nigerians.

In a statement shared via its official X (formerly Twitter) account on Sunday, SERAP criticized the increase, calling it “patently unlawful, unfair, and unjust.” The group argued that the policy serves the interests of commercial banks and the apex bank while placing an undue financial burden on ordinary Nigerians.

“We have approached the Federal High Court in Lagos to stop the CBN from enforcing this unfair increase in ATM transaction fees. The decision only benefits the CBN and commercial banks at the expense of struggling Nigerians,” SERAP stated.

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Filed last Friday under suit number FHC/L/CS/344/2025, the lawsuit—represented by SERAP’s legal team, Kolawole Oluwadare and Andrew Nwankwo—contends that the CBN is failing to uphold its mission to promote economic management and sustainable development.

Furthermore, SERAP asserts that the policy violates the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and the country’s international human rights obligations.

“The CBN is disregarding its responsibilities by compromising economic management and failing to protect consumers’ rights,” the lawsuit reads.

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SERAP has asked the court to determine whether the CBN’s decision is arbitrary, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018. Specifically, the group is requesting:

• A declaration that the increase in ATM transaction fees violates Sections 1(c) and (d), 104, 105, and 127(1) of the Federal Competition and Consumer Protection Act 2018.
• An interim injunction preventing the CBN and its representatives from enforcing the fee hike until a final ruling is made on the matter.

The lawsuit also argues that the increase creates a two-tiered financial system, marginalizing low-income Nigerians who may struggle to afford the heightened fees. SERAP warns that this policy contributes to economic and social injustices, further infringing on the rights of vulnerable citizens.

On February 11, 2025, the CBN announced a revision of ATM transaction fees, with the new charges set to take effect from March 1, 2025. With SERAP taking a stand, the case now moves to the legal arena, where the courts will decide whether Nigerians should bear the brunt of this controversial policy.