President Bola Tinubu has been strongly urged by the Socio-Economic Rights and Accountability Project (SERAP) to “direct Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), to suspend the implementation of the increase in Automated Teller Machine (ATM) transaction fees, pending the hearing and determination of the lawsuit before the Federal High Court, Lagos, challenging the legality of the increase.”
He should also “ask the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN, for legal advice on whether the CBN has the legal responsibilities to uphold the rule of law its operations by suspending the ATM fee hike, pending the determination of lawsuit on the matter,” according to SERAP.
In a lawsuit filed last month, SERAP accused the CBN of failing to stop the “patently unlawful, unfair, and unjust increase in ATM transaction fees.”
The case came after the CBN announced that withdrawals made at a bank-owned ATM located outside of a branch will now be subject to a fee of N100 for every N20,000 taken out. Withdrawals from ATMs at malls, airports, or independent cash terminals will cost N100 plus a N500 surcharge.
The organization stated in an open letter dated March 1, 2025, written by Kolawole Oluwadare, deputy director of SERAP, that “directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merits.”
“It would also be completely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office, and frequently stated commitments to uphold the rule of law,” SERAP stated.
A mockery of the legal system and the rule of law would result from implementing the increase in ATM fees while the case is still ongoing before the Federal High Court, according to SERAP.
“The CBN must halt the increase in ATM transaction fees and wait for the lawsuit’s conclusion,” SERAP added.
A portion of the letter stated: “The CBN has the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do not make nonsense of the rule of law or the Court.”
As of February 26, 2025, when the court procedures were properly served on it, and while the litigation brought by SERAP against the increase in ATM fees is pending in the Federal High Court in Lagos, the CBN is required to keep things as they are.
“Once the CBN has received the court proceedings regarding the increase in ATM fees, the bank is unable to use self-help.”
“The CBN cannot act in a way that would overreach the public interest or place the Federal High Court in a position of total helplessness or ‘fait accompli.'”
“Nigerian courts disapprove of any self-help behavior and are quick to condemn it by sending a clear message that it is not being used as a ruse to keep one party from helping himself outside the law.”
“Implementing the increase in ATM transaction fees while the substantive lawsuit and the duly served and acknowledged interlocutory application on the matter are still pending before the court would directly threaten the rule of law and the integrity of the nation’s judicial system.”
“The judicial system’s legitimacy and applicability run the risk of being compromised, which could lead other ministries, departments, and agencies [MDAs] to take a contemptuous stance toward ongoing legal proceedings.”
By immediately halting the implementation of the increase in ATM transaction fees until the lawsuit is heard and decided, the CBN should uphold its general duty to act in good faith and to refrain from taking any action that could compromise the integrity of the nation’s judicial system.
“To ensure respect for the integrity of the judicial process and the rule of law, we would appreciate it if the suggested actions were implemented immediately.”
“It is in the public interest to preserve the authority and integrity of the court in the case, as well as to keep the streams of justice clear and pure.”
On February 21, 2025, SERP filed a complaint against the CBN under the case number FHC/L/CS/344/2025 for failing to stop the clearly illegal, unfair, unjustified, and unjust increase in ATM transaction fees.
The CBN in Abuja received the court proceedings on February 26, 2025, as required. The CBN has confirmed receiving the procedures.
“SERAP has filed a lawsuit in the Federal High Court in Lagos, asking the court to decide if the CBN’s decision to raise ATM transaction fees is not arbitrary, unfair, unreasonable, and against the Federal Competition and Consumer Protection Act 2018 provisions.”
“It is in the public interest to preserve the authority and integrity of the court in the case, as well as to keep the streams of justice clear and pure.”
“SERAP observes that you have made numerous promises since taking office in May 2023, including in your inaugural address, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.'”
Since the foundation of an ordered society is the right to judicial remedy and due administration of justice, protecting these rights is crucial. Only by letting the court make a decision based on the merits of the case at hand will SERAP be able to have a fair and efficient access to justice in this case.
The judge’s total freedom to hear cases and provide decisions based on the law and facts, free from improper direct or indirect intervention, is the cornerstone of the judicial independence principle.
The Central Bank of Nigeria Act’s Section 8(1) states that “The Governor and Deputy-Governors shall be persons of recognized financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment.”
The Nigerian Constitution 1999 [as amended] states in Section 6(1) that “the courts to which this section relates, being courts established for the Federation, shall have the judicial powers of the Federation.”
In spite of anything in this constitution to the contrary, Section 6 states that “the judicial powers vested in accordance with the foregoing provisions of this section –(a) shall extend to all inherent powers and sanctions of a court of law.”
Additionally, according to the provisions, “(b) the judicial powers shall extend to all matters between persons, or between government or authority and any person in Nigeria, and to all actions and proceedings relating thereto, for the determination of any question as to the civil rights and obligations of that person…”
