SERAP Issues 48-Hour Ultimatum To CBN Over ATM Transaction Fee Hike

The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) 48 hours to reverse its recent increase in Automated Teller Machine (ATM) transaction fees, warning of legal action if the directive is not complied with.

In a statement on Sunday via its official X (formerly Twitter) handle, SERAP described the new charges as “unlawful, unfair, unreasonable, and unjust,” particularly for economically vulnerable Nigerians.

“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.

The recent adjustment in ATM withdrawal charges by the CBN has sparked widespread criticism, with many Nigerians, especially low-income earners, expressing concern over the additional financial burden. Amid rising inflation and economic hardship, critics argue that the policy further strains citizens who rely on cash transactions for their daily needs.

Many bank customers have taken to social media to voice their frustrations, stating that the increased charges significantly reduce their already limited financial resources.

Last week, the CBN announced a major revision to its ATM transaction fees, effectively removing the three free monthly withdrawals previously granted to customers using other banks’ ATMs.

According to the new policy under Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020):
On-Us Transactions (Same Bank’s ATM): Withdrawals from a customer’s own bank ATM remain free.
Not-On-Us Transactions (Other Banks’ ATMs):
On-site ATMs (within bank premises): N100 per N20,000 withdrawal.
Off-site ATMs (outside bank premises): N100 per N20,000 withdrawal, plus a surcharge of up to N500.
International Withdrawals: Charges will be based on the exact amount imposed by the international acquirer.

While the CBN has yet to officially respond to SERAP’s ultimatum, financial analysts suggest the apex bank may justify the hike as an effort to align banking fees with market realities. However, critics argue that the policy contradicts the CBN’s goal of promoting financial inclusion and easing banking transactions for the average Nigerian.

SERAP, known for challenging government policies perceived as oppressive, has reiterated its readiness to take legal steps if the CBN does not reverse the policy within the stipulated timeframe. Legal experts suggest that a lawsuit could be grounded on consumer rights, economic justice, and financial inclusion, emphasizing that the new charges disproportionately affect low-income Nigerians.

As the deadline approaches, Nigerians await a response from the CBN on whether it will reconsider its decision or prepare to defend the policy in court.