The Socio-Economic Rights and Accountability Project (SERAP) has opposed the Central Bank of Nigeria’s (CBN) recently implemented Automated Teller Machine (ATM) transaction fees, putting pressure on the CBN to remove them.
The advocacy group has given Mr. Olayemi Cardoso, the governor of the CBN, a 48-hour ultimatum, requesting that the policy be immediately reversed, calling it “unlawful, unfair, unreasonable, and unjust.”
In a February 15, 2025, open letter signed by Kolawole Oluwadare, its deputy director, SERAP voiced fears that the hike in ATM fees would disproportionately affect low-income Nigerians, exacerbating the country’s already terrible economic position.
The group emphasized that the CBN should reevaluate the policy. “The exercise of CBN’s statutory powers and functions should not cause suffering to impoverished Nigerians and contribute to violations of human rights,” it stated.
As part of its revised banking regulations, the CBN recently announced the contentious charge rise. According to the new regulation, there will now be a cost of N100 for every N20,000 withdrawn from ATMs operated by banks but situated outside of their branch locations. Additionally, there will be an additional fee of up to N500 for each N20,000 withdrawal made from ATMs at shopping malls, airports, and standalone cash points. The effective date of these charges is March 1, 2025.
The program was harshly condemned by SERAP, who claimed that it favored commercial banks above regular people. “Wealthy banks and their stockholders, not the general public, should have been responsible for the increase in ATM transaction costs. The letter said, “This policy makes life more difficult for struggling Nigerians while benefiting the CBN and financial institutions.”
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The organization also brought attention to the fact that banks still report enormous profits, frequently at the expense of their clients. “CBN policies shouldn’t be biased against the poor while giving banks that make trillions of naira a year a significant advantage. Despite President Bola Tinubu’s administration’s frequent pledges to combat poverty, this choice stands in stark contrast to those pledges.
In its ultimatum, SERAP threatened to challenge the policy in court if the CBN did not take action within the allotted 48 hours. “We would like it if the suggested actions were carried out within 48 hours of this letter being received and/or published. In the public interest, SERAP will take all necessary legal steps to force you and the CBN to abide by our request if we don’t hear back from you by then.
