The Socio-Economic Rights and Accountability Project (SERAP), a non-profit organization, has called on President Bola Tinubu to instruct Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to halt the implementation of the recently increased Automated Teller Machine (ATM) transaction fees. This request comes as a lawsuit challenging the legality of the fee hike is pending before the Federal High Court in Lagos.
In an open letter dated March 1, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization urged the President to seek legal advice from the Attorney General of the Federation, Lateef Fagbemi (SAN), on whether the CBN is legally obligated to uphold the rule of law by halting the fee increase until the court resolves the matter.
Last month, SERAP filed a lawsuit against the CBN, arguing that the hike in ATM fees is “patently unlawful, unfair, and unjust.” The controversy began when the CBN announced new charges for ATM withdrawals, including a N100 fee for withdrawals made at a bank’s ATM outside its branch premises and an additional surcharge of up to N500 for transactions at standalone cash points or locations like shopping centers and airports.
In the letter, SERAP emphasized that suspending the fee hike would allow the Federal High Court to properly adjudicate the case. “Directing the CBN to suspend the ATM fee hike would be consistent with the Nigerian Constitution, your oath of office, and your repeated promises to uphold the rule of law,” the letter stated.
The organization warned that implementing the fee increase while the lawsuit is pending would undermine the judicial process and the rule of law. “The CBN is bound to maintain the status quo as of February 26, 2025, when the court processes were served, and during the pendency of the lawsuit,” SERAP added.
SERAP further argued that the CBN has a duty to act in good faith and avoid actions that could compromise the integrity of the judicial system. “Implementing the fee hike while the case is ongoing would pose a direct threat to the credibility of Nigeria’s judicial system and set a dangerous precedent for other government agencies,” the letter read.
The organization also highlighted the potential consequences of disregarding the court process, stating, “Nigerian courts frown upon any act of self-help and are swift to repel such conduct. Allowing the CBN to proceed with the fee hike would send a signal that the judicial system can be undermined.”
SERAP’s lawsuit, filed on February 21, 2025, seeks to determine whether the CBN’s decision to increase ATM fees violates the Federal Competition and Consumer Protection Act of 2018. The court processes were served on the CBN on February 26, and the bank has acknowledged receipt.
The organization concluded its letter by urging President Tinubu to take immediate action to ensure respect for the rule of law and the integrity of the judicial process. “It is in the public interest to keep the streams of justice clear and pure and to maintain the authority of the court in this case,” SERAP stated.
Since assuming office in May 2023, President Tinubu has repeatedly pledged to govern Nigeria in accordance with the constitution and the rule of law. SERAP’s appeal underscores the need for the administration to uphold these promises, particularly in matters affecting the rights and welfare of ordinary citizens.
As the legal battle unfolds, many Nigerians await the outcome, hoping for a resolution that balances the CBN’s regulatory authority with the need to protect consumers from arbitrary and burdensome fees.
