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LAGOS,Nigeria - The Socio-Economic Rights and Accountability Project (SERAP), a non-profit organization, has called on President Bola Tinubu to instruct Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), to pause the implementation of the raised Automated Teller Machine (ATM) transaction fees until the Federal High Court in Lagos resolves the pending legal case that questions the legitimacy of the increase.
SERAP also urged the President to seek legal guidance from the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), regarding whether the CBN is legally obliged to uphold the rule of law by suspending the fee hike while the lawsuit is ongoing.
Last month, the organization filed a lawsuit against the CBN over its refusal to rescind what it termed the "patently unlawful, unfair, and unjust increase in ATM transaction fees.
" This legal action was prompted by the CBN's announcement that ATM withdrawals made at machines owned by banks but located outside branch premises would incur a fee of N100 per N20,000 withdrawn. Withdrawals at shopping centers, airports, or stand-alone cash points would entail a N100 charge plus a surcharge that could reach N500.
In an open letter dated March 1, 2025, and signed by SERAP's deputy director Kolawole Oluwadare, the organization argued that “Directing the CBN to suspend the ATM fee hike would permit the Federal High Court to consider and determine the case based on its merits.”
SERAP stated that “Doing so would align completely with the letter and spirit of the amended Nigerian Constitution of 1999, your oath of office, and your frequent pledges to uphold the rule of law.” It added, “Implementing the ATM fee increase while the lawsuit is pending would undermine the judicial process and the rule of law.”
The organization asserted that “The CBN is obligated to suspend the rise in ATM transaction fees and await the lawsuit's conclusion."
Furthermore, it emphasized that “The CBN has a duty to uphold the due process of law, safeguard the judicial process's integrity, and ensure its operations do not undermine the rule of law or court proceedings."
SERAP emphasized the importance of maintaining the status quo as of February 26, 2025, when the legal documents were properly served to the CBN, and throughout the ongoing lawsuit regarding the ATM fee increase at the Federal High Court, Lagos. Once served, the CBN cannot take matters into its own hands.
The CBN must refrain from any actions that would overshadow the public interest or place the Federal High Court in a position of helplessness or ‘fait accompli.’
Nigerian courts disapprove of any self-help actions and swiftly act against such behavior to affirm their role in ensuring that justice is not manipulated to benefit one party at the expense of the other.
Implementing increased ATM transaction fees while the relevant application and lawsuit remain under consideration would jeopardize the integrity of Nigeria’s judicial system and the rule of law. This could undermine the credibility and importance of the judicial system and encourage other ministries, departments, and agencies (MDAs) to disregard pending cases in court.
The CBN should honor its duty to act in good faith and avoid any actions that might compromise the integrity of the nation’s judicial process by promptly suspending the implementation of the ATM fee increase until the lawsuit is heard and resolved.
SERAP expressed appreciation if the suggested actions are taken swiftly to safeguard the judicial process and the rule of law.
“It is crucial for the public to keep the streams of justice transparent and pure and to uphold the authority and integrity of the court in this case."
SERAP had filed the lawsuit on February 21, 2025, with number FHC/L/CS/344/2025 against the CBN due to its refusal to rescind an unjust rise in ATM transaction fees. Legal documents were duly delivered to the CBN in Abuja on February 26, 2025, which acknowledged receipt.
In its lawsuit at the Federal High Court, Lagos, SERAP seeks to determine "whether the CBN's decision to raise ATM transaction fees is arbitrary, unfair, unreasonable, and contrary to the Federal Competition and Consumer Protection Act of 2018.”
SERAP reiterates that maintaining clear and pure streams of justice and upholding the court's authority and integrity is in the public interest.
Moreover, SERAP notes the President's commitment since taking office in May 2023, including his inaugural address, where he promised that "Nigeria will be governed impartially in accordance with the Constitution and the rule of law."
