In response to the ATM fee hike, SERAP has filed a lawsuit at the Federal High Court in Lagos to challenge the policy, arguing that it violates Nigerians’ economic rights and places an additional financial burden on already struggling citizens.
Lagos, Nigeria – The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Central Bank of Nigeria (CBN) to suspend the recent increase in automated teller machine (ATM) withdrawal charges pending a court ruling on the matter.
In a statement posted on X (formerly Twitter) on Sunday, SERAP emphasized that suspending the fee hike aligns with the Nigerian Constitution, Tinubu’s oath of office, and his commitment to upholding the rule of law.
CBN’s ATM Fee Increase Sparks Outrage
The CBN recently announced a revision of ATM withdrawal charges, raising concerns among Nigerians about its potential impact on financial inclusion and access to banking services. Under the new policy, bank customers will face increased fees for cash withdrawals from ATMs belonging to other banks, a move that has drawn widespread criticism from consumer advocacy groups and civil society organizations.
According to the new policy, customers withdrawing cash from their own bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals. However, a N100 fee per N20,000 withdrawal will apply at on-site ATMs within bank branches. For withdrawals at ATMs of other banks (not-on-us transactions), customers will be charged N100 plus a surcharge of up to N450 per N20,000 withdrawal at off-site locations.
The CBN explained that the changes were necessary to address rising operational costs and improve ATM service efficiency. It noted that the last review of withdrawal fees took place in 2019, when charges were reduced from N65 to N35. The new charges took effect on March 1, 2025.
Legal Challenge and SERAP’s Position
In response to the ATM fee hike, SERAP has filed a lawsuit at the Federal High Court in Lagos to challenge the policy, arguing that it violates Nigerians’ economic rights and places an additional financial burden on already struggling citizens.
The lawsuit, with suit number FHC/L/CS/344/2025, was filed last Friday by SERAP’s legal representatives, Kolawole Oluwadare and Andrew Nwankwo.
SERAP maintains that President Tinubu has a constitutional duty to protect citizens from what it describes as an unfair financial policy. The organization insists that suspending the new fees pending the court’s decision would demonstrate the administration’s commitment to public welfare.
Public and Expert Reactions
Many Nigerians have taken to social media to express frustration over the fee hike, viewing it as an unnecessary burden during a period of rising inflation and economic instability.
Financial analysts have also criticized the CBN’s decision, arguing that it contradicts efforts to promote cashless transactions and improve banking accessibility. Some warn that the increased transaction costs could push more Nigerians toward informal financial systems, ultimately undermining the country’s monetary policies.
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