The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) over its decision to raise Automated Teller Machine (ATM) transaction fees, describing the increase as “unlawful, unfair, unreasonable, and unjust.”
The lawsuit, filed last Friday at the Federal High Court in Lagos, challenges the recent CBN directive imposing a ₦100 charge on ATM withdrawals made outside a bank’s branch premises per ₦20,000 withdrawn. Transactions at shopping centers, airports, and standalone cash points would attract an additional surcharge of up to ₦500.
SERAP is asking the court to determine whether the fee hike violates the Federal Competition and Consumer Protection Act of 2018. The group is also seeking a declaration that the increase is arbitrary and unlawful, as well as an interim injunction restraining the CBN and its agents from implementing the charges until the case is resolved.
In its suit, SERAP argues that the policy is discriminatory, disproportionately affecting low-income Nigerians who may struggle to afford the increased fees. The organization contends that the hike contradicts constitutional provisions, the CBN Act, and Nigeria’s international human rights obligations.
“The increase creates a two-tiered financial system that discriminates against poor Nigerians,” SERAP stated, adding that the CBN’s decision undermines economic management and sustainable development.
The case is pending before the court as SERAP seeks to halt the enforcement of the new ATM transaction fees.
