The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to instruct the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to put a hold on the newly introduced Automated Teller Machine (ATM) transaction fee increase.
The group emphasised that the suspension should remain in place until the Federal High Court in Lagos delivers its ruling on the legality of the policy.
Additionally, SERAP urged the president to consult the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, to determine whether the CBN is legally obligated to uphold the rule of law by deferring the implementation of the fee hike while the lawsuit is ongoing.
Last month, SERAP took legal action against the CBN for failing to revoke what it described as an “illegal, unjust, and unreasonable” increase in ATM transaction charges.
This lawsuit came after the CBN announced that withdrawals from ATMs not located within a bank’s branch would now attract a N100 charge per N20,000 withdrawn, while transactions at shopping malls, airports, and standalone cash points would include an additional surcharge of up to N500.
In a letter dated March 1, 2025, signed by its deputy director Kolawole Oluwadare, SERAP argued that halting the fee hike would ensure the Federal High Court has the opportunity to review the case and make a fair determination.
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The organisation further stated that suspending the new charges aligns with both the Nigerian Constitution and the president’s repeated commitment to upholding the rule of law.
SERAP warned that going ahead with the ATM fee increase while the lawsuit remains unresolved would undermine the judiciary and set a dangerous precedent for disregarding legal proceedings.
The group insisted that the CBN must respect due process and put the policy on hold until the court reaches a verdict.
The letter read in part: “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 has the duty to maintain the status quo as of 26 February 2025 when the court processes were duly served on it, and during the pendency of the lawsuit filed by SERAP on the ATM fee hike before the Federal High Court, Lagos.
“Once the CBN has been duly served with the court processes on the ATM fee hike, the bank cannot resort to self-help.
“The CBN is not permitted to do or take any action or omission that would overreach the public interest or foist a situation of complete helplessness or ‘fait accompli’ on the Federal High Court.
“Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending a strong signal that they are not being used as a mere subterfuge to tie the hands of one party while the other helps himself extra-judicially.
“Implementing the increase in ATM transaction fees while the duly served and acknowledged interlocutory application and the substantive lawsuit on the matter are pending before the court would pose a direct threat to the integrity of the country’s judicial system and the rule of law.
“The credibility and relevance of the judicial system risk being undermined, potentially encouraging other ministries, departments and agencies [MDAs] to adopt dismissive attitudes toward pending cases in court.
“The CBN ought to uphold its general duty to act in good faith and to refrain from taking any action that may undermine the integrity of the country’s judicial process by immediately suspending the implementation of the increase in ATM transaction fees pending the hearing and determination of the lawsuit on the matter.
“We would be grateful if the recommended measures are taken urgently to ensure respect for the integrity of the judicial process and the rule of law.
“It is in the public interest to keep the streams of justice clear and pure and to maintain the authority and integrity of the court in the case.
“SERAP had on 21 February 2025 filed the lawsuit with number FHC/L/CS/344/2025 against the CBN over the failure to reverse the patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees.
“The court processes were duly served on 26 February 2025 on the CBN in Abuja. The CBN has acknowledged receipt of the processes.
“In the lawsuit filed at the Federal High Court, Lagos, SERAP is asking the court to determine ‘whether the decision by the CBN to increase ATM transaction fees is not arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.’
“It is in the public interest to keep the streams of justice clear and pure and to maintain the authority and integrity of the court in the case.
“SERAP notes that since assumption of office in May 2023 you have repeatedly promised, including in your inaugural speech, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.’
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“Protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society. The only way in which SERAP can have fair and effective access to justice in this matter is to allow the court to decide, one way or the other, on the merits of the case before it.
“The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them based on facts and in accordance with the law, without any improper interference, direct or indirect.
“Section of 8(1) of Central Bank of Nigeria Act provides that, ‘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.’
“Section 6(1) of the Nigerian Constitution 1999 [as amended] provides that ‘judicial powers of the Federation shall be vested in the courts to which this section relates, being courts established for the Federation.’
“Section 6 provides that, ‘the judicial powers vested in accordance with the foregoing 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.’
“The provisions also provide: ‘(b) the judicial powers shall extend to all matters between persons, or between government or authority and to 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.’”
