The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its decision to increase Automated Teller Machine (ATM) transaction fees.
SERAP, in suit number FHC/L/CS/344/2025, filed at the Federal High Court in Lagos, argued that the move was unlawful, unfair, and detrimental to consumers.
The New Daily Prime reported that the CBN recently introduced a new policy imposing a charge of N100 per N20,000 withdrawn from ATMs located outside bank branches.
Additionally, ATM withdrawals at shopping centres, airports, and standalone cash points will now attract a fee of N100 plus a surcharge of up to N500 per N20,000 transaction.
SERAP is challenging the legality of this decision, citing its inconsistency with the Federal Competition and Consumer Protection Act (FCCPA) of 2018.
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The organisation contends that the fee hike is arbitrary and discriminates against economically disadvantaged Nigerians who may struggle to afford the additional costs.
SERAP, represented by lawyers Kolawole Oluwadare and Andrew Nwankwo, asserts that the policy contradicts sections 1(c) and (d), 104, 105, and 127(1) of the FCCPA, which mandate the protection of consumer rights and the prohibition of unfair business practices.
The organisation argued that the increase in ATM fees effectively creates a financial system that disadvantages the poor while favouring banks, which continue to report significant profits.
SERAP further stated that the decision violates Nigeria’s constitutional provisions, the CBN Act, and international human rights obligations.
The organisation emphasises that the burden of additional fees is unjustly placed on vulnerable citizens, exacerbating economic hardship and social inequality.
In its suit, SERAP seeks several declarations and orders, including a declaration that the CBN’s decision to increase ATM fees is arbitrary, unfair, and in violation of the FCCPA.
It also seeks a declaration that the CBN cannot unilaterally raise ATM fees without the approval of the Federal Competition and Consumer Protection Commission (FCCPC).
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Additionally, SERAP requests an order setting aside the CBN circular dated February 10, 2025, which announced the fee increase, as well as an injunction restraining the CBN, its representatives, and financial institutions from implementing or enforcing the new fees.
The statement partly read: “CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits mostly at the expense of their customers. The increase in ATM transaction fees would inflict misery on poor Nigerians and contribute to human rights abuses.
“Imposing exorbitant ATM transaction fees on socially and economically vulnerable Nigerians at a time several Nigerian banks are declaring trillions of naira in profits yearly is manifestly unfair, unreasonable and unjust.
“The CBN, through a Circular to all banks and other financial institutions dated February 10 2025, stated that it has reviewed and increased the ATM transaction fees prescribed in section 10(7) of the CBN Guide to Charges by Bank, Other Financial and Non-Bank Financial Institutions 2020.
“Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018 provides that the objectives of the Act are to ‘protect and promote the interests and welfare of consumers’ and ‘prohibit restrictive or unfair business practices’ such as the exorbitant and unreasonable increase in ATM transaction fees by the CBN.
“The provisions of the Federal Competition and Consumer Protection Act are directly binding on the CBN, as the provisions constrain the exercise of the statutory powers and functions of the institution.
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“Section 2(1) of the Act provides that its provisions ‘apply to all undertakings [such as the CBN] and scope of application to all commercial activities within Nigeria.
“Section 2(2) provides that: ‘This Act is binding upon- (a) a body corporate or agency of the Government; (b) a body corporate; (c) all commercial activities aimed at making profit and geared towards the satisfaction of demand from the public.’
“According to section 70(1) of the Act, ‘For the purpose of this Act, an undertaking [such as the CBN] is considered to be in a dominant position if it can act without taking account of the reaction of its customers or consumers.’
“The Act prohibits abuse of dominant position by the CBN including charging excessive ATM transaction fees to the detriment of consumers. Section 104 of the of the Act asserts the supremacy of the Act over ‘the provisions of any other law’, such as the CBN Act. The only exception to the provision is the Nigerian Constitution 1999 [as amended].”
“Section 127(1) of the Act also prohibits the CBN from making any policy or providing “any services at a price that is manifestly unfair, unreasonable or unjust.”
As of press time, no date has been fixed for the hearing of the interim application and the substantive suit.
