The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) over what it describes as the “failure to reverse the patently unlawful, unfair, unreasonable and unjust increase in Automated Teller Machine (ATM) transaction fees.”
Recently, the CBN announced a new policy stating that ATM withdrawals from machines owned by a bank but located outside its branch premises would now attract a charge of N100 per N20,000 withdrawn.
Additionally, withdrawals at shopping centers, airports, and standalone cash points would carry a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal.
In response, SERAP filed a lawsuit—FHC/L/CS/344/2025—at the Federal High Court in Lagos on the 21st of February,2025, seeking a ruling on whether the CBN’s decision to hike ATM transaction fees is arbitrary, unfair, unreasonable, and in violation of the Federal Competition and Consumer Protection Act of 2018.
SERAP is asking the court to declare the increase in ATM fees as contrary to sections 1(c) and (d), 104, 105, and 127(1) of the Federal Competition and Consumer Protection Act 2018, which mandates fair business practices and consumer protection.
Furthermore, SERAP is seeking an interim injunction to prevent the CBN, its officials, agents, or any affiliated persons from enforcing the directive pending the determination of an interlocutory injunction filed in the case.
The organization argues that the CBN’s decision contradicts the Nigerian Constitution (as amended), the CBN Act, the Federal Competition and Consumer Protection Act, and the nation’s international human rights commitments. It asserts that the fee increase effectively creates a financial system that discriminates against economically disadvantaged Nigerians, making banking services less accessible to them.
According to SERAP, “The patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically Nigerians.”
The lawsuit, filed by Kolawole Oluwadare and Andrew Nwankwo on behalf of SERAP, criticizes the CBN for compromising its mission of economic management and sustainable development.
SERAP maintains that the apex bank is failing to adhere to constitutional provisions, consumer protection laws, and human rights obligations while exercising its regulatory authority.
It argues that instead of burdening ordinary Nigerians, the cost of ATM withdrawals should be borne by wealthy banks and their shareholders, who continue to make trillions in profits. SERAP warns that this fee hike would deepen financial hardship for struggling Nigerians while further enriching banks that already benefit from excessive customer charges.
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The group also highlights the unfairness of imposing exorbitant fees on vulnerable citizens at a time when Nigerian banks are recording record-breaking profits.
SERAP cites a CBN circular dated 10th of February, 2025, in which the bank officially announced the reviewed ATM fees as stipulated in section 10(7) of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions 2020.
It further emphasizes that section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, is designed to “protect and promote the interests and welfare of consumers” and “prohibit restrictive or unfair business practices,” including unjustified fee hikes.
SERAP insists that the Act is legally binding on the CBN and restricts how the institution exercises its statutory powers. Section 2(1) of the Act applies to all undertakings including the CBN and covers all commercial activities within Nigeria, while section 2(2) extends its reach to government agencies, corporate bodies, and any commercial activity geared toward profit-making and public demand.
Citing section 70(1) of the Act, SERAP argues that the CBN is in a dominant market position and must not implement policies without considering the impact on consumers. It further points to section 104, which establishes the supremacy of the Act over other laws, including the CBN Act, with the only exception being the Nigerian Constitution.
Lastly, SERAP references section 127(1) of the Act, which prohibits the CBN from implementing policies or pricing structures that are “manifestly unfair, unreasonable, or unjust.”