SERAP Sues CBN for Unlawful, Unjust Increase in ATM Transaction Fees

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over what it describes as an unlawful, unfair, and unjust increase in ATM transaction fees, which is set to take effect on March 1.

The CBN announced that for on-site withdrawals; meaning when a customer withdraws money from their own bank, the fee will be N100 for every N20,000 withdrawn. For off-site withdrawals, which occur when a customer withdraws money from a non-issuing bank, the fee will also be N100, plus a surcharge of no more than N500 per N20,000. This surcharge must be disclosed to the customer at the point of withdrawal.

In the lawsuit, numbered FHC/L/CS/344/2025 and filed last Friday at the Federal High Court in Lagos, SERAP is requesting that the court determine whether the CBN’s decision to increase ATM transaction fees is arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act of 2018.

SERAP is asking the Federal High Court to halt the CBN from implementing or enforcing this increase in ATM transaction fees, describing it as patently unlawful and unjust, benefiting only the CBN and commercial banks at the expense of poor Nigerians.

The organization seeks an interim injunction to restrain the CBN, its officers, agents, associates, and anyone acting on its directives from enforcing this decision until the motion for a permanent injunction is heard and determined.

In the lawsuit, SERAP argues that the increase cannot be justified under the 1999 Nigerian Constitution (as amended), the CBN Act, the Federal Competition and Consumer Protection Act, or Nigeria’s international human rights obligations.

They assert that the increased fees create a two-tiered financial system that discriminates against poor Nigerians who may struggle to afford the higher ATM charges.

Furthermore, SERAP claims that this unjust increase in ATM transaction fees violates the social and economic rights of Nigerians. They contend that the CBN is undermining its declared mission to effectively manage the country’s economy and promote sustainable development.