SERAP Sues CBN Over ATM Fee Hike, Calls It Unlawful and Unjust

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its recent decision to increase Automated Teller Machine (ATM) transaction fees, describing it as “patently unlawful, unfair, unreasonable, and unjust.”

The CBN recently introduced a N100 charge for every N20,000 withdrawn from an ATM located outside a bank’s branch. Additional fees of up to N500 apply to withdrawals at shopping malls, airports, and independent cash points.

In the lawsuit FHC/L/CS/344/2025, filed at the Federal High Court in Lagos, SERAP is asking the court to determine whether the CBN’s decision to increase ATM fees violates the Federal Competition and Consumer Protection Act of 2018. The organization argues that the fee hike is capricious, unjust, and irrational, disproportionately affecting low-income Nigerians and creating a two-tiered banking system.

SERAP is seeking an interim injunction to prevent the CBN from enforcing the new charges while the case is being heard. The organization contends that the policy contradicts Nigeria’s Constitution, the CBN Act, and the country’s international human rights obligations.

According to Kolawole Oluwadare and Andrew Nwankwo, who filed the lawsuit on behalf of SERAP, the CBN is failing in its duty to promote sustainable economic growth and consumer welfare. They argue that wealthy banks and their shareholders, not ordinary Nigerians, should bear the financial burden.

SERAP also points out that the policy unfairly favors banks, which continue to report trillions of naira in profits, while burdening economically disadvantaged citizens. The group asserts that charging high ATM fees at a time of record bank profits is both irrational and unjust.

The lawsuit references Section 10(7) of the CBN Guide to Charges by Banks and Other Financial Institutions (2020), arguing that the Federal Competition and Consumer Protection Act (2018) prohibits excessive and unfair business practices, including the CBN’s arbitrary fee hikes.

SERAP insists that the CBN must comply with consumer protection laws and avoid using its dominant position to impose excessive charges on customers. The group emphasizes that the Act supersedes any conflicting laws, including the CBN Act, and bars institutions from establishing policies that are blatantly unfair or unjust.

As the legal battle unfolds, the lawsuit could set a precedent for consumer rights in Nigeria’s banking sector.