Emmanuel Ochayi
The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct the Central Bank of Nigeria (CBN) to suspend the recent increase in automated teller machine (ATM) withdrawal charges. The rights group insists that the policy should be halted pending the outcome of a legal case challenging the decision.
Join our WhatsApp ChannelIn a statement on X (formerly Twitter) on Sunday, SERAP said “We’ve urged President Tinubu to direct the CBN to immediately suspend the ATM fee hike pending court verdict on the matter. This is entirely consistent with the Nigerian Constitution 1999 [as amended], his oath of office and promises to uphold the rule of law.”
The recent ATM withdrawal charge increase has sparked criticism across the country, with many Nigerians expressing concern over its impact on financial inclusion and access to banking services.
READ ALSO: SERAP Gives CBN 48 Hours To Reverse ATM Withdrawal Fee Increase
Legal Challenge and SERAP’s Position
SERAP has taken legal action against the CBN’s new ATM withdrawal charges, arguing that the policy violates the economic rights of Nigerians. The organization maintains that the decision places an extra financial burden on citizens already struggling with inflation and economic hardship.
By urging President Tinubu to intervene, SERAP highlights his constitutional duty to protect public interest and prevent what it describes as an unjust financial policy. The group insists that suspending the charges until the court rules on the matter would demonstrate the administration’s commitment to fairness and economic justice.
The increase in ATM withdrawal fees comes at a time when the cost of living is rising. Many citizens have voiced their frustration on social media, describing the policy as unfair. Some financial experts have also criticized the CBN’s decision, arguing that it contradicts efforts to encourage cashless transactions. They warn that higher charges could push Nigerians towards informal financial systems, weakening the effectiveness of monetary policies.
CBN’s Justification for the Fee Increase
The CBN announced the revision of ATM withdrawal charges on February 11, 2025, stating that the new fees would take effect from March 1, 2025. The apex bank said the review aligns with Section 10.7 of its Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).
The circular, signed by John Onojah, acting director of the financial policy and regulation department, explained that the fee increase was necessary due to rising operational costs and the need to enhance ATM efficiency. The last review in 2019 had reduced withdrawal fees from N65 to N35.
Under the new policy:
- Customers withdrawing from their bank’s ATMs will continue to enjoy free withdrawals.
- A N100 fee per N20,000 withdrawal will apply at ATMs located within bank branches.
- For withdrawals at ATMs of other banks, a N100 fee plus a surcharge of up to N450 per N20,000 withdrawal will be charged at off-site locations.
SERAP’s Legal Action Against CBN
SERAP’s lawsuit, filed at the Federal High Court in Lagos, seeks to stop the CBN from implementing the new ATM fees. The case, registered as FHC/L/CS/344/2025, was filed last Friday by SERAP’s legal representatives, Kolawole Oluwadare and Andrew Nwankwo.
The organization argues that the fee hike violates the constitutional rights of Nigerians by making financial services less accessible. SERAP insists that the government should focus on policies that improve banking accessibility rather than increasing transaction costs.
Public Reactions and Economic Concerns
Many Nigerians have criticized the fee hike, calling it an additional burden on people already struggling with high inflation and economic instability. Some social media users have described the move as an attempt to limit access to cash.
Financial analysts argue that the CBN’s decision may discourage banking transactions, pushing more people towards informal financial systems. They caution that this could negatively impact the government’s cashless policy and weaken efforts to stabilize the economy.
SERAP continues to demand transparency and accountability in economic policies. The group maintains that suspending the ATM fee increase is necessary to prevent further financial hardship for Nigerians.
As the legal battle unfolds, many are waiting to see whether President Tinubu will heed SERAP’s call and direct the CBN to halt the policy.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
