By Uche Onyeali
Non-profit and advocacy organisation, Socio-Economic Rights and Accountability Project, SERAP, has dragged the Central Bank of Nigeria, CBN, before a Federal High Court in Lagos, for failing to reverse the recent increase in Automated Teller Machine, ATM, transaction fees.
The organisation described the CBN action as “patently unlawful, unfair, unreasonable and unjust”.
The CBN had recently announced that ATM withdrawals made at a machine owned by a bank outside its branch premises would now attract a charge of N100 per N20,000 withdrawn while ATM withdrawals at shopping centres, airports or standalone cash points would incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal.
In the suit number FHC/L/CS/344/2025 filed last Friday at the Federal High Court, Lagos, by its lawyers, Kolawole Oluwadare and Andrew Nwankwo, 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 is asking the court for, among other prayers, “a declaration that the decision by the CBN to increase ATM transaction fees is arbitrary, unfair, unreasonable and contrary to the provisions of sections 1(c) and (d), 104, 105 and 127(1) of the Federal Competition and Consumer Protection Act 2018, which is binding on the CBN.
“An order of interim injunction restraining the CBN, its officers, agents, associates or any other persons acting on its directive or instructions from enforcing and giving effect to the decision, pending the hearing and determination of the motion on notice for an order of interlocutory injunction filed in this suit”.
It noted that the increase in ATM withdrawals could not be justified under the current Nigerian Constitution, the CBN Act, Federal Competition and Consumer Protection Act, and the country’s international human rights obligations.
It also noted that the increase created a two-tiered financial system that discriminates against poor Nigerians who may not be able to afford or pay the increased ATM fees.
SERAP is therefore asking the court for a declaration that the decision by the defendant in upwardly reviewing and increasing ATM transaction fees, as contained in the defendant’s circular dated February 10, 2025, is arbitrary, unfair, unreasonable, unjust and a dis-service to the consumers of the services rendered by Banks, Other Financial and Non-Bank Financial Institutions in Nigeria, and ultimately in breach of sections 1(c) and (d), 104, 105 and 127(1) of the Federal Competition and Consumer Protection Act 2018.
It also wants a declaration that by the combined provisions of section 1 (c) and (d), 104, 105 and 127 (1) of the Federal Competition and Consumer Protection Act 2018, section 42(1) (a) of the Central Bank of Nigeria Act 2007 and section 10.7 of the Central Bank of Nigeria Guide to Charges by Banks, Other Financial and Non-Bank Financial Institution 2020, the defendant could not unilaterally increase ATM Transaction Fees without the consent of the Federal Competition and Consumer Protection Commission, FCCPC.
It, therefore, wants an order setting aside the defendant’s circular directing tall banks and other financial institutions for being arbitrary, unfair, unreasonable, unjust and a breach of the provisions of sections 1 (c) and (d), 104 and 127 (1) of the Federal Competition and Consumer Protection Act 2018, as well as an order restraining the CBN, its agents, assigns, privies and or representatives or such other persons acting on its behalf, and all Banks, Other Financial and Non-Bank Financial Institutions in Nigeria from implementing and/or enforcing the decision of the defendant.
No date has been fixed for the hearing of the interim application and the substantive suit.
