CBN Ordered to Reverse ATM Fee Increase Within 48 Hours

In response to criticism from the Socio-Economic Rights and Accountability Project (SERAP), the Central Bank of Nigeria (CBN) has been under pressure to remove the transaction fees it recently implemented for Automated Teller Machines (ATMs).

The advocacy group demands that the CBN governor, Mr. Olayemi Cardoso, immediately reverse the policy, which it calls “unlawful, unfair, unreasonable, and unjust,” and has given him a 48-hour ultimatum.

Concerns that the hike in ATM fees would disproportionately affect low-income Nigerians and exacerbate the already poor economic situation were raised by SERAP in an open letter dated February 15, 2025, written by Kolawole Oluwadare, the organization’s deputy director.

The group stressed the need for the CBN to reevaluate the policy. According to the statement, “The exercise of CBN’s statutory powers and functions should not cause suffering to impoverished Nigerians and contribute to violations of human rights.”

The CBN recently announced the contentious fee increase as a component of its revised banking regulations. A fee of N100 will now be applied for every N20,000 withdrawn from ATMs controlled by a bank but situated outside of its branch locations under the new policy. A further fee of up to N500 would be applied for ATM withdrawals of N20,000 at shopping malls, airports, and standalone cash points. These fees are scheduled to go into effect on March 1, 2025.

SERAP vehemently opposed the program, claiming that it puts commercial banks ahead of regular people. “Wealthy banks and their stockholders should have paid the higher ATM transaction fees, not the general public. The letter claimed that while this approach helps the CBN and financial institutions, it makes life more difficult for Nigerians who are struggling.

Additionally, the group emphasized that banks still report enormous profits, frequently at the expense of their clients. The poor should not be disproportionately disadvantaged by CBN policies, which significantly favor banks that generate trillions of naira in profits. This choice stands in stark contrast to the numerous pledges made by President Bola Tinubu’s administration to combat poverty.

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SERAP threatened to challenge the policy in court if the CBN did not take action within the allotted 48 hours, as part of its ultimatum. “Within 48 hours of receiving and/or publishing this letter, we would appreciate it if the suggested actions were taken. SERAP will take all necessary legal steps to force you and the CBN to abide by our request in the public interest if we don’t hear back from you by then.