The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding an immediate reversal of the recent hike in Automated Teller Machine (ATM) transaction fees. The organization described the increase as “unlawful, unfair, unreasonable, and unjust.”
In an open letter dated February 15, 2025, and addressed to CBN Governor Olayemi Cardoso, SERAP urged the apex bank to reconsider its decision to prevent further financial hardship for Nigerians. The human rights group stressed that the CBN must ensure its policies do not worsen economic difficulties or violate fundamental human rights.
Chronicles Reporters earlier reported that the CBN had introduced new ATM transaction charges for banks and financial institutions, set to take effect on March 1, 2025. The policy was announced in a statement signed by John S. Onojah, the Acting Director of the Financial Policy and Regulation Department. According to the CBN, the measure aims to improve efficiency and expand ATM deployment nationwide.
Under the new directive, ATM withdrawals from machines outside bank branches will now attract a charge of N100 per N20,000 withdrawn. Additionally, transactions at shopping malls, airports, and standalone ATMs will incur an extra surcharge of up to N500 per N20,000. Banks have been instructed to begin implementing these charges from March 1, 2025.
However, SERAP’s Deputy Director, Kolawole Oluwadare, who signed the letter, criticized the move, warning that it would disproportionately impact low-income earners, deepening poverty and economic inequality. He argued that instead of burdening everyday Nigerians, the cost should have been absorbed by commercial banks and their shareholders.
“This policy serves the interests of the CBN and commercial banks at the expense of struggling citizens,” the letter stated.
SERAP contended that the fee hike contradicts provisions in the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights commitments. The organization described the policy as exploitative, reinforcing financial inequality and effectively creating a two-tier banking system that discriminates against lower-income individuals.
The letter further urged the CBN to fulfill its duty of promoting economic opportunities for Nigerians rather than imposing policies that exacerbate financial hardship.
“At a time when banks are recording trillions of naira in annual profits, this increase is manifestly unfair, unreasonable, and unjust,” SERAP emphasized.
The organization also referenced the United Nations Guiding Principles on Business and Human Rights, stating that the CBN must conduct proper human rights assessments to prevent economic disenfranchisement.
SERAP warned that if the CBN fails to reverse the policy within 48 hours, legal action will be taken to ensure compliance.
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