According to the Socio-Economic Rights and Accountability Project (SERAP), President Bola Tinubu should “direct Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), to suspend the implementation of the increase in Automated Teller Machine (ATM) transaction fees, pending the hearing and determination of the lawsuit before the Federal High Court, Lagos, challenging the legality of the increase.”
Additionally, SERAP advised him to “ask the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN, for legal advice on whether the CBN has the legal responsibilities to uphold the rule of law its operations by suspending the ATM fee hike, pending the determination of lawsuit on the matter!”
Because the CBN has not reversed the “patently unlawful, unfair, and unjust increase in ATM transaction fees,” SERAP launched a complaint against it last month.
The case came after the CBN announced that, going forward, ATM withdrawals conducted at a bank-owned machine located outside of its branch premises would be subject to a fee of N100 for every N20,000 drawn. For ATM withdrawals at shopping malls, airports, or independent cash stations, there is a N100 cost plus a N500 surcharge.
Kolawole Oluwadare, the deputy director of SERAP, signed the open letter dated March 1, 2025, which stated: “The Federal High Court could hear and decide the case on its merits if the CBN was directed to suspend the ATM fee hike.”
According to SERAP, “it would also be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office, and frequently reiterated promises to uphold the rule of law.”
SERAP claims that “it would be a mockery of the judicial process and the rule of law to implement the ATM fee hike while the lawsuit on the matter is pending before the Federal High Court.”
The CBN must halt the increase in ATM transaction fees while it awaits the lawsuit’s verdict, according to SERAP.
Part of the letter stated: “The CBN has the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do not make nonsense of the rule of law or the Court.”
The CBN is responsible for preserving the current situation as of February 26, 2025, when the court’s procedures were properly served upon it, and while the Federal High Court in Lagos is considering the petition that SERAP filed about the increase in ATM fees.
“The bank cannot use self-help once the CBN has been properly served with the court proceedings regarding the increase in ATM fees.”
“The CBN is not allowed to do or take any action or omission that would exceed the public interest or force the Federal High Court to make a decision in which it is completely powerless or “fait accompli.”
“Any act of self-help is frowned upon by Nigerian courts, which are quick to condemn it by sending a clear message that it is not being used as little more than a ruse to keep one party from helping himself outside the law.”
“It would be a direct threat to the integrity of the nation’s judicial system and the rule of law to implement the increase in ATM transaction fees while the duly served and acknowledged interlocutory application and the substantive lawsuit on the matter are still pending before the court.”
“By undermining the legitimacy and importance of the legal system, other ministries, departments, and agencies [MDAs] may be persuaded to take a contemptuous stance toward ongoing legal proceedings.”
In order to preserve the integrity of the nation’s legal system, the CBN should immediately halt the implementation of the increase in ATM transaction fees while the lawsuit is heard and decided. This is in accordance with its general duty to act in good faith.
“To guarantee adherence to the rule of law and the integrity of the judicial process, we would appreciate it if the suggested actions were implemented immediately.”
“It serves the public interest to preserve the authority and integrity of the court in the case, as well as to keep the streams of justice clear and pure.”
“SERAP filed a lawsuit against the CBN on February 21, 2025, under the case number FHC/L/CS/344/2025, for failing to reverse the unreasonable, unjust, and patently unlawful increase in ATM transaction fees.”
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The court procedures were properly served on the CBN in Abuja on February 26, 2025. The CBN has confirmed that it has received the procedures.
In its case, SERAP is requesting that the Federal High Court in Lagos decide “whether the CBN’s decision to raise ATM transaction fees is not arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.”
“It serves the public interest to preserve the authority and integrity of the court in the case, as well as to keep the streams of justice clear and pure.”
“SERAP observes that you have made numerous promises since taking office in May 2023, including in your inaugural address, that in accordance with the Constitution and the rule of law, Nigeria will be impartially governed.”
The foundation of an ordered society is the protection of the right to judicial redress and appropriate administration of justice. In this case, SERAP can only have equitable and efficient access to justice if the court is given the opportunity to make a decision based on the merits of the case.
“The judge’s absolute freedom to hear and rule on cases based on the facts and the law, free from improper interference, whether direct or indirect, is the fundamental tenet of judicial independence.”
According to Section 8(1) of the Central Bank of Nigeria Act, “The Governor and Deputy-Governors shall be persons of recognized financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment?”
The judicial functions of the Federation shall be vested in the courts to which this section pertains, namely courts constituted for the Federation, according to Section 6(1) of the Nigerian Constitution 1999 [as amended].
“The judicial powers granted in accordance with the aforementioned provisions of this section -(a) shall extend, notwithstanding anything to the contrary in this constitution, to all inherent powers and sanctions of a court of law,” according to Section 6.
Additionally, the provisions state that “(b) the judicial powers shall extend to all matters between persons, or between government or authority and any person in Nigeria, and to all actions and proceedings relating thereto, for the determination of any question as to the civil rights and obligations of that person.”
