The Central Bank of Nigeria (CBN) is facing a legal challenge from the Socio-Economic Rights and Accountability Project (SERAP) over its recent increase in Automated Teller Machine (ATM) transaction fees.
SERAP filed the lawsuit at the Federal High Court in Lagos, arguing that the CBN’s decision to raise ATM fees is “unlawful, unfair, unreasonable, and unjust.” The apex bank had announced that ATM withdrawals at machines outside bank premises would now attract a N100 fee per N20,000 withdrawn, while those at shopping centers, airports, or standalone cash points would incur an additional surcharge of up to N500.
In suit number FHC/L/CS/344/2025, SERAP is asking the court to determine whether the CBN’s decision violates the Federal Competition and Consumer Protection Act (FCCPA) 2018. It contends that the policy disproportionately affects low-income Nigerians, creating a two-tiered financial system that discriminates against those who cannot afford the increased fees.
The lawsuit, filed by lawyers Kolawole Oluwadare and Andrew Nwankwo on behalf of SERAP, argues that the increase is inconsistent with the Nigerian Constitution, the CBN Act, and international human rights obligations. SERAP also claims that the CBN is prioritizing bank profits over consumer welfare, as financial institutions continue to report substantial profits while passing additional costs onto customers.
Among other reliefs, SERAP is seeking:
- A declaration that the CBN’s decision is arbitrary, unfair, and a violation of the FCCPA.
- An order nullifying the CBN’s February 10, 2025, circular on ATM transaction fees.
- An injunction restraining the CBN and financial institutions from implementing the fee increase.
The court has yet to schedule a hearing for the interim application and substantive suit.
