The Socio-Economic Rights and Accountability Project has called on President Bola Tinubu to instruct Central Bank of Nigeria Governor, Olayemi Cardoso to halt the recent increase in Automated Teller Machine transaction fees.
This request is pending the resolution of a lawsuit filed by SERAP at the Federal High Court in Lagos, challenging the legality of the fee hike.
SERAP also called on President Tinubu to consult Attorney General Lateef Fagbemi, SAN, on whether the CBN is legally obligated to uphold the rule of law by suspending the ATM fee hike pending the lawsuit’s outcome.
Last month, SERAP sued the CBN for failing to reverse what it described as an unlawful, unfair, and unjust increase in ATM transaction fees.
The lawsuit was filed after the CBN announced new charges for ATM withdrawals. Under the policy, withdrawals from a bank-owned ATM outside its branch premises now attract a ₦100 fee per ₦20,000 withdrawn.
For withdrawals at locations like shopping centers, airports, or standalone cash points, users will pay a ₦100 fee plus a surcharge of up to ₦500.
Banks have been directed to implement the increased ATM fees starting March 1, 2025.
In an open letter dated March 1, 2025, and signed by SERAP Deputy Director Kolawole Oluwadare, the organization stated, “Directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit.”
SERAP said, “It would also be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office and oft-repeated promises to uphold the rule of law.”
SERAP argued that implementing the increased ATM fees while the lawsuit is still pending before the Federal High Court would undermine the judicial process and the rule of law.
SERAP also stated that it is in the public interest for the CBN to suspend the increased ATM fees and wait for the lawsuit’s outcome.
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 increased ATM fees before the Federal High Court, Lagos.
“Once the CBN has been duly served with the court processes on the increased ATM fees, 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 strong signal that they are not being used as mere subterfuge to tie the hands of one party while the other helps himself extra-judicially.”
SERAP also said “Implementing the increased ATM 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.
“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.”
It added “The court processes were duly served on 26 February 2025 on the CBN in Abuja. The CBN has acknowledged the receipt of the processes.
“In the lawsuit filed at the Federal High Court, 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.
“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.
“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 a 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.”
