SERAP Gives CBN 48 Hours To Reverse ATM Withdrawal Fee Increase

The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) a 48-hour ultimatum to reverse its recent increase in Automated Teller Machine (ATM) transaction fees. The advocacy group has described the new charges as “unlawful, unfair, unreasonable, and unjust,” particularly for economically vulnerable Nigerians.

In a statement posted on its official X (formerly Twitter) handle on Sunday, SERAP insisted that the CBN must rescind the decision immediately or face legal action.

“We’ve given the Central Bank of Nigeria [CBN] 48 hours to reverse the patently unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees, or face legal action. The charges will hit hardest those at the bottom of the economy,” the statement read.

Public Outrage Over Rising Banking Costs

Many Nigerians, particularly low-income earners, have condemned the CBN’s decision, arguing that it will further strain their finances amid rising inflation and economic hardship. Bank customers have taken to social media to express their frustration, with many calling the increase exploitative.

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A Lagos-based trader, Amina Yusuf, shared her frustration “I struggle to make ends meet every day, and now they want to charge me more just to withdraw my own money? This is unfair.”

Similarly, a civil servant, John Okafor, lamented “They are making life difficult for ordinary Nigerians. Why should we pay extra fees when the economy is already bad?”

SERAP Threatens Legal Action

SERAP has a history of challenging government policies perceived as anti-people. The organization has made it clear that if the CBN does not reverse the ATM fee increase within the stipulated 48 hours, it will seek legal redress.

Legal analysts suggest that SERAP could challenge the policy on several grounds, including consumer rights protection and economic justice. According to Lagos-based lawyer Femi Adeyanju “The new ATM charges disproportionately affect low-income Nigerians. SERAP can argue that the policy contradicts financial inclusion principles and consumer rights protection.”

CBN’s Position on ATM Fee Increase

The CBN has not yet responded to SERAP’s ultimatum. However, financial analysts speculate that the central bank may justify the increase as an attempt to align banking fees with current economic realities.

Last week, the CBN revised its ATM transaction fees, removing the three free monthly withdrawals for customers using other banks’ ATMs. Under the new policy:

• Same bank’s ATM withdrawals (On-Us transactions): Still free.
• Other banks’ ATMs (Not-On-Us transactions):
  • On-site ATMs (within bank premises): N100 per N20,000 withdrawal.
  • Off-site ATMs (outside bank premises): N100 per N20,000 withdrawal, plus an additional surcharge of up to N500.
  • International withdrawals: Charges will depend on the international acquirer’s fees.

Critics argue that this move contradicts the CBN’s commitment to promoting financial inclusion and easing banking transactions. A financial expert, Chinedu Okeke, remarked “The CBN should be making banking cheaper, not more expensive. This decision will push more people away from formal banking.”

Nigerians Await CBN’s Response

As SERAP’s 48-hour deadline approaches, Nigerians are eager to see if the CBN will reconsider its stance or if the advocacy group will follow through with its legal threat.

Many citizens believe that reversing the new ATM charges would provide much-needed relief in these tough economic times.