The Socio-Economic Rights and Accountability Project, SERAP, has issued a 48 hours ultimatum to the Central Bank of Nigeria, CBN, to reverse the newly announced hike in Automated Teller Machine, ATM, transaction fees, calling it “unlawful, unfair, unreasonable, and unjust”.

SERAP Deputy Director, Kolawole Oluwadare, in an open letter dated February 15, 2025, urged CBN Governor Olayemi Cardoso to immediately reverse the policy.

According to SERAP, the development would worsen the financial hardship faced by Nigerians, particularly low-income earners.

The letter titled, ‘SERAP gives CBN 48 hours to withdraw ‘unlawful, unfair hike in ATM transaction’, observed that the increase contradicts Section 42(1)(a) of the CBN Act 2007, which mandates the apex bank to ensure “adequate and reasonable financial services for the public” in the national interest.

The letter also cited Section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018, which seeks to protect and promote the interests and welfare of consumers and prohibits restrictive or unfair business practices.

According to the letter, the increase in ATM transaction fees will hit the hardest those at the bottom of the economy and exacerbate the growing poverty in the country.

According to the letter, “CBN policies should not be skewed against poor Nigerians and in favour of banks that continue to declare trillions of naira in profits at the expense of their customers.”

SERAP noted that imposing exorbitant fees at a time when many Nigerians are struggling economically is unfair, unreasonable, and unjust, warning that the policy creates a two-tiered financial system, discriminating against economically vulnerable citizens who may not afford the extra charges.

The increase in fees, according to SERAP contradicted the Tinubu administration’s commitment to addressing poverty.

The rights group stressrd that the CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and international human rights obligations.

SERAP, therefore, demanded that the CBN reverse the decision within 48 hours of the receipt and/or publication of its letter, failing which it will take legal action.

According to SERAP, “If we have not heard from you by then, we shall take all appropriate legal actions to compel you and the CBN to comply in the public interest.”

CBN in a circular dated February 10 announced that ATM withdrawals made at machines outside a bank’s branch premises will now attract a N100 charge per N20,000 withdrawn, while withdrawals at shopping centres, airports and stand-alone cash points will carry an additional surcharge of up to N500 per N20,000 withdrawal.

The directive takes effect March 1, 2025.