SERAP Urges CBN to Reverse Increase in ATM Transaction Fees

The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to immediately withdraw the recent hike in Automated Teller Machine (ATM) transaction fees. The group called the increase unfair and harmful to Nigerians.

In an open letter dated February 15, 2025, SERAP’s Deputy Director, Kolawole Oluwadare, criticized the new policy, arguing that it places an undue financial burden on citizens, especially those already struggling with economic hardship. The CBN’s directive now imposes an N100 fee on ATM withdrawals exceeding N20,000 at off-premises machines, with additional charges of up to N500 in certain locations such as airports and shopping centers.

SERAP says the fees hurt low-income Nigerians while banks keep making big profits. The organization contends that the CBN should ensure its policies align with public interest rather than exacerbating financial difficulties for the populace.

The group says the increase goes against the government’s pledge to fight poverty. SERAP urged the CBN to reconsider the decision within 48 hours or face potential legal action to compel compliance.

SERAP says the increase breaks multiple laws, including the Nigerian Constitution and the CBN Act. It also argued that the decision undermines consumer protection laws and contributes to economic inequality by favoring financial institutions over the general public.

The organization called on the CBN to uphold its responsibility in fostering an inclusive financial system that supports economic stability rather than imposing policies that burden the most vulnerable citizens. SERAP stressed that regulatory bodies should prioritize public welfare and financial fairness over corporate profit.

With growing backlash, Nigerians are waiting to see if the CBN will reverse the decision.