Following criticism from the Socio-Economic Rights and Accountability Project (SERAP), the Central Bank of Nigeria (CBN) has faced pressure to remove its recently implemented Automated Teller Machine (ATM) transaction fees.
Calling for an urgent reversal of what it calls a “unlawful, unfair, unreasonable, and unjust” policy, the advocacy group has given CBN Governor Mr. Olayemi Cardoso a 48-hour ultimatum.
An open letter sent by Kolawole Oluwadare, SERAP’s deputy director, on February 15, 2025, raised worries that the hike in ATM fees would disproportionately affect low-income Nigerians, exacerbating the country’s already terrible economic position.
The organization made a strong case for the CBN to reevaluate the policy. “The exercise of CBN statutory powers and functions should not cause impoverished Nigerians to suffer and contribute to violations of human rights,” it stated.
Recently, the CBN announced the contentious fee rise as part of its revised banking regulations. The new rule states that there will now be a cost of N100 for every N20,000 taken out from an ATM that is operated by a bank but is not situated inside its branch. Additional fees of up to N500 every N20,000 transaction would also apply to ATM withdrawals at shopping malls, airports, and independent cash points. The date of these charges’ implementation is March 1, 2025.
The strategy was harshly condemned by SERAP, who claimed that it disadvantages regular people in favor of commercial banks. Instead of the general people, affluent banks and their stockholders should have been responsible for paying the increase in ATM transaction costs. “This policy makes life more difficult for struggling Nigerians while benefiting the CBN and financial institutions,” the letter said.
Banks continue to report enormous profits, frequently at the expense of their clients, the group further pointed out. “CBN policies shouldn’t be biased against the poor while substantially benefiting banks that generate profits in the trillions of naira.” This choice is in direct opposition to the government of President Bola Tinubu’s repeated pledges to combat poverty.
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SERAP threatened to bring legal action to contest the policy in court if the CBN did not take action within the allotted 48 hours. Within 48 hours of this letter being received and/or published, we would appreciate it if the suggested actions were taken. If you don’t respond by then, SERAP will take all necessary legal steps to force you and the CBN to abide with our request for the benefit of the public.
