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The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) a deadline of 48 hours to reverse the increase in Automated Teller Machine (ATM) transaction fees, labeling the decision of the apex financial institution as unlawful, unfair, unreasonable, and unjust.
The organization indicated that if the plan persists, it will cause suffering for impoverished Nigerians and lead to human rights violations. They also appealed to the CBN Governor, Olayemi Cardoso, to leverage his leadership role to promptly revoke the policy in order to prevent any hardship in the nation.
SERAP urged him to “ensure that the application of CBN's statutory powers and functions does not cause suffering to impoverished Nigerians and lead to human rights abuses.”
Recently, the CBN revealed that ATM withdrawals from a machine owned by a bank but located outside its branch will now incur a charge of N100 per N20,000 withdrawn. Withdrawals at shopping centers, airports, or standalone cash points will attract a N100 fee in addition to a surcharge of up to N500 per N20,000 withdrawal. Banks have been advised to implement the increased ATM fees starting from March 1, 2025.
In a statement issued on Sunday by SERAP’s deputy director, Kolawole Oluwadare, the organization stated: “The blatantly unlawful, unfair, unreasonable, and unjust rise in ATM transaction fees will disproportionately affect those at the lower end of the economic spectrum and worsen the escalating poverty in the nation.”
SERAP argued, “The burden of the rise in ATM transaction fees should fall on affluent banks and their shareholders, rather than the general populace. The hike primarily benefits the CBN and commercial banks at the cost of impoverished Nigerians.”
As per SERAP, “Policies from the CBN should not be biased against poor Nigerians and excessively favor banks that continue to report trillions of naira in profits largely at the expense of their clients. The increase in ATM transaction fees would cause suffering for poor Nigerians and foster human rights violations.”
The letter partially stated: “The rise in ATM transaction fees is also fundamentally inconsistent with the repeatedly stated commitment of President Bola Tinubu’s administration to tackle the increasing poverty in our nation.”
“We would appreciate it if the suggested measures are executed within 48 hours of receipt and/or publication of this letter. Should we not receive any communication from you by then, SERAP will pursue all necessary legal actions to compel compliance by you and the CBN in the public interest.”
“The excessive and unlawful rise in ATM transaction fees during a period when the country is experiencing economic and financial crises would exacerbate the impoverishment of the populace.”
“Charging exorbitant ATM transaction fees to socially and economically vulnerable Nigerians while various Nigerian banks report trillions of naira in yearly profits is blatantly unfair, unreasonable, and unjust.”
“The increase cannot be justified under the Nigerian Constitution of 1999 [as amended], the CBN Act, the Federal Competition and Consumer Protection Act, and the nation’s international human rights obligations
“The obviously unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees contributes to violations of the human rights of socially and economically vulnerable Nigerians.”
“The increase establishes a two-tiered financial system that discriminates against impoverished Nigerians who may be unable to pay the raised fees.”
“While President Tinubu’s government has the primary responsibility to protect the rights of Nigerians, the CBN also has obligations to ensure that its practices and guidelines do not cause or contribute to human rights violations.”
“The CBN could play a significant role in promoting economic opportunities for Nigerians living in poverty.” “The CBN is not adhering to the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and the nation's international human rights obligations as it exercises its statutory powers and functions.”
“The CBN is also undermining its proclaimed mission to enhance the management of the country’s economy and, ultimately, sustainable development.”
“As per our information, the CBN through a Circular to all banks and other financial institutions dated February 10, 2025, announced that it has reviewed and increased the ATM transaction fees specified in section 10(7) of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions 2020.”
“Section 42(1)(a) of the CBN Act of 2007 states that 'The Bank shall wherever necessary seek the cooperation of and cooperate with other banks in Nigeria to – (a) promote and maintain adequate and reasonable financial service for the public.' It further specifies that any CBN policy 'shall be in the national interest.'”
“Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018 articulates the objectives of the Act as protecting and promoting consumer interests and welfare and prohibiting restrictive or unfair business practices, including the unreasonable and exorbitant rise in ATM transaction fees by the CBN.”
“Importantly, the provisions of the Federal Competition and Consumer Protection Act are binding on the CBN, as they restrict the exercise of the institution’s statutory powers and functions.”
“Specifically, section 2(1) of the Act stipulates that its provisions 'apply to all undertakings [such as the CBN] and scope of application to all commercial activities within, or having effect within, Nigeria.'”
“Section 2(2) states, 'This Act also applies to and is binding upon- (a) a body corporate or agency of the Government of the Federation; (b) a body corporate; (c) all commercial activities aimed at making profit and geared towards meeting public demand.'”
“According to section 70(1) of the Act, 'For the purpose of this Act, an undertaking [like the CBN] is deemed to be in a dominant position if it can act without considering the reactions of its customers or consumers.'”
“The Act outlaws the abuse of dominant position by the CBN, including the imposition of excessive ATM transaction fees at the detriment of consumers.”
“Section 104 of the Act emphasizes the supremacy of the Act over 'the provisions of any other law,' including the CBN Act, with the sole exception being the Nigerian Constitution of 1999 [as amended].”
“Section 127(1) of the Act also forbids the CBN from implementing any policy or offering 'any services at a price that is manifestly unfair, unreasonable, or unjust.'”
“The CBN has clear obligations under the United Nations Guiding Principles on Business and Human Rights (UNGPs) to conduct human rights due diligence to recognize and mitigate its contributions to human rights violations resulting from its activities and those it is directly linked to through its business relationships.”
“The CBN holds responsibilities under the UNGPs to take effective measures to prevent or mitigate potential human rights harm and to contemplate terminating any charges or transaction fees where severe adverse human rights consequences cannot be avoided or alleviated.”
